PHL Tax LOOP includes a sliver of relief for commercial property
12/14/2013 | Real Estate Blog
Have you put down roots in Philadelphia by purchasing a residence? Have you been there for 10 years? You could be getting a little more money back in your pocket, said Mayor Michael Nutter on Tuesday, Dec. 3. How? By way of the implementation of PHL Tax LOOP, a program that addresses the significant property tax increases that have occurred in the recent past.
What are the requirements for relief? First, all applications must be submitted no later than Wednesday, Jan. 15, 2014. Next, there are some very detailed restrictions for what property actually qualifies for some relief.
The first, is that the market value of the home for the tax year 2014 must be triple the value assessed for 2013 after the $30,000 Homestead Exemption has been subtracted. This relief includes single-family dwellings and multi-unit residential properties with up to three residential units and one commercial unit. There lies the little slice of relief for commercial property.
While the focus is on those who use the property as their primary residence, it doesn’t completely exclude commercial property. The hitch is that the terms of the relief require that the owner of the property have used it as their primary residence since July 1, 2003 or earlier. If this is the case, multi-unit property being used in part as a primary residence could qualify.
Of course, there are some other restrictions as well, the complete details of which cannot be contained in a single post. Commercial real estate matters involve a vast number of issues that extend beyond getting a little tax relief here and there. For those with issues large and small, advice from a real estate attorney may cost a little money now, but the value for the future can be considered priceless.
Source: Philadelphia Business Journal, “Real estate relief coming to long-time homeowners in Philadelphia,” Jared Shelly, Dec. 4, 2013