Is commercial property tax increase coming to Philadelphia?
3/17/2016 | Real Estate Blog
As we have mentioned in previous posts, the development and use of commercial real estate can be beneficial not only to the owners or developers of the property, but to the surrounding community as well. While at times the benefits reaped in connection with commercial real estate are mutual, other times one party will benefit more than the other. Legislation that was recently proposed by two Pennsylvania lawmakers illustrates this.
The proposed legislation concerns the state’s uniformity clause. This clause prohibits varying the commercial real estate tax rate by more than 15 percent from the rate that is applied to other types of real estate. Members of the Philadelphia business community, as well as the city’s mayor, support the proposed law. If passed, the change would apply only to the city of Philadelphia.
If the legislation became law, owners of commercial property in the city would likely see an increase in the taxes assessed. That increase would make room for a reduction in wage and business taxes. According to the mayor, the reduction in the latter two types of taxes could, in turn, lead to the creation of tens of thousands of jobs in Philadelphia.
The matter has been referred to the state’s finance committee. We will provide relevant updates as they become available.
Real estate taxes is just one of many matters related to commercial real estate that property owners need to address. When questions or issues pertaining to the matter arise, a lawyer may be of assistance in resolving them.