Owner-Occupied Real Estate Payment Agreement
The Owner-Occupied Real Estate Payment Agreement allows homeowners to make monthly payment on their past due Real Estate taxes. Monthly payments are calculated using a four-tier system based on household income and family size.Owner-Occupied Real Estate Payment Agreement Application Packet
Using a family of four as an example:
Tier 1: Monthly income is $4,622 and up.
Tier 2: Monthly income is $3,301 - $4,621. These households must pay 10% of their monthly household income. They are entitled to a waiver of 100% of the penalties that have accrued.
Tier 3: Monthly income is $1,981 - $3,300. These must pay 8% of their monthly household income. They are entitled to a waiver of 50% of the interest and 100% of the penalties that have accrued.
Tier 4: Monthly income is $0 - $1,980. These households must pay 5% of their monthly income but no less than $25 per month. They are entitled to a waiver of 100% of the interest and 100% of the penalties that have accrued.
Real Estate Tax Deferral Program
Real Estate Tax Deferral Program Application
An Ordinance (Bill No. 130417-A) signed by the Mayor on June 25, 2013 amends Chapter 19-1300 ("Real Estate Taxes") of the Philadelphia Code, specifically §19-1307 ("Deferrals of Real Estate Tax for Taxpayers Based Upon Household Income, Household Expenses, and Available Liquid Assets") by further providing for deferrals for taxpayers experiencing significant increases in their Real Estate Taxes, under certain terms and conditions. Financial hardship is required to be eligible for deferral of payment of Real Estate Taxes. Deferral of payment of an increase in Real Estate Tax may be granted for any increase, or portion thereof, that is greater than 15%, when such increase creates a financial hardship. The property for which the deferral is requested must be the principal residence of the owner. An owner requesting deferral pursuant to §19-1307 shall submit an application to the Department of Revenue no later than January 31 of the tax year for which the deferral is requested.
Real Estate Tax Receivership
The Real Estate Tax Receivership Program is an enforcement tool that gives a Court-appointed Receiver the authority to collect rents from a property and manage a tax-delinquent building until the debt is repaid. The delinquent owner will be deprived of any income from the property until the delinquency is resolved. Debtors will be notified by mail of the pending court action.
The City will file a petition with the Court of Common Pleas for the appointment of a Receiver. Once appointed, the Receiver will meet with tenants and building employees, collect rents, make necessary repairs, and pay expenses for the building, including current and back taxes. The Receiver, who is under contract with the City, is paid a management fee out of the rents collected from the building. All back taxes and the Receiver’s management fee must be paid before the management of the building can be returned to the original owner.
New Use and Occupancy Returns Being Sent Out
All property owners who pay Use and Occupancy (U&O) Tax will receive new tax returns. The return and payment are still due on July 25th for monthly filers. Effective July 1, U&O has a tax rate of 1.13% applied to the Actual Value Initiative property assessments. There is an exemption of $2,000 off of the maximum tax amount reflected on the new tax return being sent out. [-]
Hotel Room Rental Tax Increase
The Hotel Tax Rate has been increased to 8.5%. The old rate was 8.2%. A new 6 month “Monthly Hotel Room Rental Tax” coupon book is being mailed along with notices of the increase to all current hotel room taxpayers. The new coupon book is to be used for months July through December. The payment for July at the new rate is due 8/15/2013.