In its 2025 citywide reassessment, Philadelphia has once again delayed issuing property reassessment notices past the certification deadline. Historically, some taxpayers have received value notices after the informal appeal deadline, making first-level appeal discussions impossible. Commercial property owners should consider filing appeals due to declining market conditions, potentially leading to significant tax savings.
Key Takeaways
- Reassessment Announcement: Philadelphia has reassessed properties for 2025 but has delayed issuing notices
- Impact on Property Owners: Delays and potential overvaluation mean property owners must be proactive in reviewing assessments
- Appeal Opportunities: Informal First Level Review (FLR), which allows an opportunity to discuss value without the expense of an attorney and an appraisal, and the formal Board of Revision of Taxes (BRT) appeals are available, with the BRT deadline on October 7, 2024
Background
Despite a March 31 certification deadline, the city of Philadelphia still has not released the new property values. This recurring issue has led to situations where property owners receive their assessment notices after the appeal deadline has passed, complicating their ability to challenge potentially inflated values. This year, with declining market conditions, it is especially important for commercial property owners to review their assessments closely and consider appealing to ensure their tax liabilities reflect current market realities.
The Reassessment’s Impact
While the city has acknowledged that commercial properties, particularly in the office market, have lost value, it is not guaranteed that this will be reflected in new assessments. With the city facing over $1 billion in value from previously filed and settled appeals, budgetary pressures may result in inaccurate assessments. Property owners should be proactive to ensure that the new values are appropriate. Reducing taxable values will ultimately increase profitability.
Property Tax Implications for Businesses
For commercial property owners in Philadelphia, an advanced review and potential appeal can reduce real estate taxes, use and occupancy taxes, and Business Improvement District (BID) taxes. Property taxes are one of the largest line items of any company’s operating expenses, so availing yourself of this opportunity is one of the best ways to increase (or preserve) net operating income.
Pennsylvania Property Tax Expertise
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