Summary
The From Virtual Realty to Full Value Realty: Preparing for Reassessment report explores Philadelphia’s shift to full-value property assessments, a change intended to improve fairness and transparency in the real estate tax system. The report warns that without careful management, the reassessment could lead to substantial property tax increases, confusion among taxpayers, and political resistance. It also highlights the potential for increased municipal debt issuance due to the rise in assessed property values, urging the City to adopt a disciplined approach to borrowing. Key recommendations include ensuring revenue neutrality unless tax shifts are offset by reductions in other areas, advocating for legislative changes to maintain flexibility in setting school tax rates, and improving public communication to mitigate opposition to the reassessment.