The City of Philadelphia Department of Revenue announced the start of a new repayment program aimed at helping owner-occupied homeowners with past due and delinquent real estate taxes.
The Owner-Occupied Real Estate Payment Agreement allows homeowners to make monthly payments on their past due real estate taxes. Monthly payments are calculated using a four-tier system based on household income and family size.
Using a family of four as an example:
Tier 1: Monthly income is $4,622 and up. These households must pay the full amount of past due real estate taxes, including interest and penalties. Monthly payment amounts are at the discretion of the Revenue Department.
Tier 2: Monthly income is $3,301 – $4621. These households must pay 10 percent of their monthly household income. They are entitled to a waiver of 100 percent of the penalties that have accrued.
Tier 3: Monthly income is $1,981 – $3,300. These households must pay 8 percent of their monthly household income. They are entitled to a waiver of 50 percent of the interest and 100 percent of the penalties that have accrued.
Tier 4: Monthly income is $0 – $1,980. These households must pay 5 percent of their monthly income but no less than $25 per month. They are entitled to a waiver of 100 percent of the interest and 100 percent of the penalties that have accrued on the account.
“We are excited to offer this new program to Philadelphia homeowners,” says Clarena Tolson, commissioner, Department of Revenue. “We understand that there are times when a person needs a fresh start to get their financial obligations in order. This program gives them that help and more importantly, it helps them to remain in their homes.”
To qualify and continue on the one-time re-payment plan, applicants must remain current or under an agreement for current year and future real estate taxes.
To apply for the program, residents can visit the Revenue Department’s website at www.phila.gov/revenue for an application or visit the Department of Revenue at Municipal Services Building, 1401 JFK Blvd., Concourse level. Applicants should bring proof of income to apply.
The Owner Occupied Real Estate Payment Agreement is one of several tax assistance programs available to Philadelphia residents. For more information visit the website at www.phila.gov/revenue or call 215-686-6442.