Taubenberger launches first punch

Republican mayoral nominee Al Taubenberger launched his first direct attack of the campaign season yesterday, critiquing Michael Nutter's position on property-tax reassessment at a news conference and in a public letter.

Taubenberger was hardly heaving bombs. His language was measured, and he focused on policy. But the fact that he sought to call attention to a difference between himself and Nutter - given the back-slapping and all-smiles tone of the campaign so far - was new and noteworthy.

At issue is the plan to reassess properties citywide, and to begin taxing property owners on the full value of their property instead of a fraction of assessed value.

The transition would be "revenue neutral" inasmuch as the city's take from property taxes would stay the same. But full-value reassessment is certain to lead to higher property taxes for some, while others will enjoy lower tax bills.

Proponents of reassessment, including Nutter, say it is necessary to correct an unjust and confusing system that taxes lower-value properties at a higher rate while giving breaks to highly valued homes and businesses.

Taubenberger worries that reassessment will hinder development, drive low- and moderate-income homeowners out of gentrifying neighborhoods, and increase taxes on homeowners who invest heavily in their properties.

"I do not want to see the budget balanced on the backs of the little guy, the guy who puts everything into his house," Taubenberger said. "That's exactly who we want to encourage to stay."

The position represents an evolution for Taubenberger, if not a reversal. As vice chairman of the city's Tax Reform Commission in 2003, Taubenberger signed off on the commission's recommendations, which included full-value reassessment.

Yesterday, Taubenberger said that reassessment was the "weak link" in the recommendations but that he had signed anyway because he strongly favored the commission's other proposals.

Nutter, who had to take far harder shots in the Democratic mayoral primary, seemed surprised by Taubenberger's critique.

"You can't solve a problem by doing nothing. Everyone knows the current assessment system is broken, and just saying 'don't do anything' is unacceptable," Nutter said.

The city's assessment of property values bears little resemblance to market reality. Homes and businesses in the wealthier neighborhoods of Philadelphia, particularly Center City and its fringes, are consistently under-assessed, while properties in lower-income neighborhoods are over-assessed.

"It's not just unfair, it's illegal," said Brett Mandel, executive director of Philadelphia Forward, an organization that has called for a lawsuit to compel the city to overhaul its assessment methodology. "In a sense, this has allowed some parts of the city to prosper at the expense of other parts."

Nutter is aware that tinkering with property taxes in a way that leads to higher bills for some - even as it leads to lower bills for others - is bound to be controversial. But he said there were safeguards, such as a 10 percent cap on year-to-year property tax increases, that could make the transition smoother.

"I'm for fairness in the system. Philadelphians deserve an accurate assessment notice that sets the true value of their property," Nutter said. "Some people will pay more, yes, but right now there are many low-income Philadelphians, many senior citizens, who are clearly paying more than they should."