Council wary over new AVI property assessments

A SKEPTICAL City Council grilled the Nutter administration Tuesday about the criteria used to reassess the city's 579,000 properties and why some assessments appear to be out of whack.

The Office of Property Assessment spent two years reassessing properties by analyzing sales and validating more than 86,000 recorded transactions dating back five years, administration officials said. Building permits were reviewed, field inspections were made and valuation models were created.

Still, some members could not understand how some reassessments vary so greatly on a single block or how assessments could be done without an assessor stepping foot inside a property, especially in gentrified areas where amenities may differ.

Council President Darrell Clarke spoke about a woman in Francisville, whose three-story rowhouse was assessed at $45,000 in fiscal year 2013 and was recently valued to be $455,000.

"You're basically speculating," Clarke said, noting that there were not comparable sales of a similar house in that area. "What that person is required to pay for taxes is not speculative. It's actually real dollars. I don't see how that's fair."

Council members demanded a copy of the formula used to reassess properties and suggested that the city's property-tax reform, the Actual Value Initiative, may need to be slowed down.

"If it's not done accurately, we should not move forward," said Councilman Kenyatta Johnson, whose 2nd District includes hard-hit areas like Point Breeze and Southwest Center City.

Councilman Mark Squilla, who represents the 1st District, where most residents will likely get slammed, recently proposed phasing in the changes over four years, adding that it would give OPA time to get it right. An AxisPhilly analysis showed that 15 percent of the assessments were outside of industry standards and were more than 50 percent off the sales price, mainly on the high end.

Chief Assessment Officer Richie McKeithen said that it could take a couple of years before assessments are perfect but that the assessments are within industry standards.

When asked if the administration would consider phasing in tax changes, city Finance Director Rob Dubow said, "We'll talk about any relief measures." McKeithen said Washington, D.C., and Maryland phased in reassessments over three years.

"That is a serious possibility," Councilman Curtis Jones Jr. said, adding that members have taken "butt whoopings" at community meetings.

Councilman Bill Greenlee noted there is a fear in some areas that people may get taxed out. "There is a real feeling over there that this is an intentional move to move people out, traditionally working-class African-Americans, people who live close to Center City," he said. "People are very, very upset, and they see conspirarcy."

Council has until June 30 to decide how to protect those hardest hit under AVI. Property owners can file a first-level review with OPA by March 31, or 30 days from when an assessment notice is received. Formal appeals can be made to the Board of Revision of Taxes by Oct. 7.