If your property’s assessment increased by 50% or more from one year to the next, you may want to apply to the City of Philadelphia’s Longtime Owner Occupied Program (LOOP). The program can help you save money on your Real Estate Tax if:
- Your property assessment increases by 50% or more from one year to the next, and
- The assessment increases again in the future.
Besides the assessment increase, LOOP has income and length-of-ownership requirements. It also doesn’t guarantee any savings to homeowners who enroll. The deadline to apply is February 17, 2020 for Real Estate Taxes due in 2020.
Below, we clarify who qualifies, and show an example of a homeowner who would save money with LOOP.
Let’s determine eligibility
Before you apply for LOOP, make sure you meet all these requirements:
- You have lived in your home for 10 years or more.
- Your income meets, or falls below, program limits based on family size.
- Your property taxes –or payment agreement– is current.
- Your property assessment increased by 50% or more from one year to the next.
How a taxpayer saves money with LOOP
If your property assessment increased by exactly 50% after the Homestead Exemption, you will not save money right away. Your Real Estate Tax bill will be based on that 50% increase and the current tax rate. But when you’re approved for LOOP, your assessment is locked in. It cannot increase in the future.
You will only see savings in the first year if your property assessment increased more than 50% from one year to the next.
By locking in your assessment, your home is shielded from future assessment increases. So you stand to save money if property assessments in your area continue to rise: Your property’s assessment won’t.
Once you’re in LOOP, there’s no need to re-apply in the future, unless your deed changes.
Below is an example of how a taxpayer could save money with LOOP. In this example, the homeowner’s property assessment increased by 75% (after the Homestead Exemption) between 2018 and 2019.
Example: The assessed value of an eligible resident’s home was $80,000 in 2018 and increased to $185,000 in 2019.
| 2018 assessment | $80,000 |
| 2019 assessment | $185,000 |
| 2019 Homestead Exemption | -$45,000 |
| 2019 assessment after Homestead Exemption | $140,000 |
| Increase from 2018 to 2019, after Homestead ($140,000 minus $80,000, divided by $80,000) |
+75% |
| LOOP locks in assessment at 50% increase ($80,000 plus $40,000) |
$120,000 |
Instead of paying property taxes on $185,000, this LOOP-enrolled homeowner pays taxes on $120,000.
| 2019 no LOOP | 2019 with LOOP | LOOP savings | |
|---|---|---|---|
| Assessed Value | $185,000 | $120,000 | |
| 2019 Tax Rate | 1.3998% | 1.3998% | |
| Tax Due | $2,589.63 | $1,679.76 | $909.87 |
Homeowners whose property assessment increased by exactly 50%, or less, will see more immediate savings with the Homestead Exemption. By law, homeowners can’t benefit from the Homestead Exemption and LOOP at the same time.
LOOP is a one-time program. If you are removed from LOOP at any time, you cannot re-apply.
Photo credit: @samantha_madera
