Mayor Michael A. Nutter, joined by City officials, announced the launch of PHL Tax LOOP, the Longtime Owner Occupants Program, a new Real Estate Tax relief program for eligible Philadelphia homeowners. This week, the City of Philadelphia began mailing information packets, including a pre-filled application, to 80,000 properties based on preliminary eligibility requirements. The LOOP application deadline is Wednesday, January 15, 2014.
“Our new property tax system is fair and accurate for all Philadelphians – but fairer and more accurate values meant large Real Estate Tax increases for some homeowners,” said Mayor Nutter. “In the current budget, working with City Council, we set aside $20 million to help longtime homeowners by offering Real Estate Tax relief. PHL Tax LOOP is an opportunity for property owners to receive savings on their Tax Year (TY) 14 Real Estate Taxes. I want to encourage every eligible Philadelphian to apply for this important discount.”
Eligibility requirements for PHL Tax LOOP are as follows:
• The TY14 market value of the property minus the $30,000 Homestead Exemption is triple the TY13 property value;
• The property must be either a single-family dwelling or a multi-unit property with up to three residential units and one commercial unit;
• The property must be the primary residence of the owner since at least July 1, 2003;
• The property does not currently have, or ever had, a tax abatement;
• The Real Estate Taxes for the property must be up-to-date; the owner must be current on an existing payment agreement or the owner must have applied to enter into a payment agreement;
And the homeowner meets income requirements based on household size.
In order to qualify for LOOP Real Estate Tax savings, applicants must meet all eligibility requirements and apply by January 15, 2014. Once approved, homeowners enrolled in LOOP will receive the real estate taxes discount for 10 years.
The LOOP discount will vary based on property values. Approved LOOP applicants will have their TY14 Real Estate taxes calculated using the TY14 tax rate of 1.34 percent multiplied by three times the TY13 property value.
All applicants will be notified by a decision letter in March 2014. Due to the LOOP timeline, a new Real Estate Tax payment procedure has been outlined for LOOP applicants. Homeowners applying for LOOP should pay the discounted amount indicated on the brochure received in the information packet by the real estate tax due date, March 31, 2014 or February 28, 2014 to receive an additional 1 percent discount.
If approved, no further action is needed. If an application is denied, the property owner must pay the balance due, the difference between the reduced amount due with the LOOP discount and the amount due without LOOP, by April 30, 2014 to avoid interest or penalties.
If a homeowner pays real estate taxes through their mortgage company, the City will notify the mortgage company of the new amount due if the LOOP application is approved.
Individuals should apply for LOOP whether or not they have received the Homestead Exemption.
TY14 Real Estate Tax bills for all Philadelphia properties will be mailed on December 9, 2013. These bills will not indicate if a property is LOOP eligible.
For more information on LOOP, log onto www.phila.gov/LOOP. For questions and assistance, please call 215-686-9200. Information is available online and by phone in multiple languages.
In addition to these resources, the City of Philadelphia has created a helpful widget to determine if a property is eligible for LOOP. The “Am I Eligible?” widget is available through www.phila.gov/LOOP.