The Philadelphia Real Estate Blog

head_left_image

Your AVI (Actual Value Initiative) Handbook / Playbook

Your AVI (Actual Value Initiative) Handbook / Playbook

We all know that it is looming, that dark unknown cloud coming to your neighborhood - the AVI - where real estate taxes Your AVI Handbookwill soar to help fund the ailing Philadelphia School District and the hapless City Council folks who cannot think of any other way to fund the City's budget woes and bankrupt City. I have created a handbook or in the spirit of football season, I have created a Playbook, if you will, of how this game will be played out.

Before I begin, let's all try to get to our happy place.  Take several deep breaths. You are going to need some tools: a yoga mat, a hot cup of tea, Jack Daniels, and a valium. Oh, and keep your handbook (and your checkbook) ready for the months ahead.  One last thing. Have your go-to attorney ready on speed dial because alttorneys will be busy with lots of appeals.

So what is going to happen ?

1.  In December of this year, property owners will get their tax bill for 2013.  Don't get too worked up. You can relax as this bill will be based on pre-AVI assessments. (Deep breath in. Deep breath out. It's a good time to grab your yoga meditation mat.)

2.  Around that same time, you will get a notice of your new "AVI" assessment.  This is the basis for calculating your 2014 bill, which will arrive later in the year.   This is the time where you can call your Realtor and ask "Is this accurate?".  If not, call your "go-to" attorney which you already have since you read this playbook and begin your appeal process immediately.  Have your attorney on speed dial as he or she will be flooded with calls. (Better boil the hot water for that calming cup of tea now.)

3.  Now that you've done the Yoga, sipped your tea, head for the bar for that shot of JD. While you are there, call your doctor for that prescription as you wait for City Council to finalize the tax policy as they will set the milage rate (tax rate) and they are not going to be fast about it.   Once that rate is set you can actually determine your tax bill for 2014.

4.  And most importantly, while you wait patiently on your bar stool, set up a bank account and put money aside so you can budget this increase.  This will help ease the pain.  Perhaps cutting back on your own excesses - such as the dreaded soft drinks, basic food and water and the like, will be a good idea so we can all pay for the sins of Philadelphia, such as Carl Greene and Arlene Ackerman. 

If you are still sober at this time, we can watch how this brilliant plan will effect the real estate market, rents of tenants and the local economy.  And pray as several unintended consequences such as property values depreciating, rents escalating and local neighborhood commercial districts suffering in order to fund the budget woes of the City of Philadelphia occur.   More properties will go into foreclosure and there will be more tax sales when and if the City ever gets around to collecting the taxes due.   And of course, new construction and the hated tax abatements will be even that much more in demand versus the row home across the street whose taxes were just hiked 5X.  Brilliance at its best!   Remember it is important to not ask Council Members to "DROP DROP" as that is far too important for them to keep with our taxpayer money as they are doing such a great job.

Lastly, we can hope and pray that the City will act more fiscally responsible and that our services will increase and be more efficient after our taxes are hiked.  For many, their taxes will be hiked 5X so maybe their services will increase 5X as well?  We can only hope so.  If not, maybe we can all plan for another AVI in 2016 and do it all over again?

In the meantime, brace yourself, do your yoga and deep breaths in order to prepare, especially if you live in Northern Liberties, Fishtown, Old Kensington, South Kensington, Fairmount, Art Museum, Chinatown, Loft District, Queen Village, Old City, Center City, Rittenhouse Square, Fitler Square, Graduate Hospital, Point Breeze (this area might be protected), South Philly, Passyunk Square and Pennsport or any area that "gentrified".  I am sure I am missing a few spots but heck, we have been told it only affects a few areas by our City leaders. 

 

Feel free to subscribe to our blog or our monthly newsletter to stay up to date with our latest posts and information on the Philadelphia Real Estate Market.  You can also sign up to receive the Philadelphia Real Estate Blog via email.

The Philadelphia Real Estate Blog  The Somers Team on Facebook  The Somers Team on Twitter  The Somers Team on LinkedIn

 Bookmark and Share

Your AVI (Actual Value Initiative) Handbook / Playbook
share
Your AVI (Actual Value Initiative) Handbook / Playbook We all know that it is looming, that dark unknown cloud coming to your neighborhood - the AVI - where real estate taxes will soar to help fund the ailing Philadelphia School District and… more
OPEN HOUSE: Sunday 9/30 12-2PM Stunning home in Point Breeze
share
1903 Annin Street - Open House from 12-2PM Offered at $239, 900 View Photo Gallery Stop by on Sunday, September 30th and tour this completely remodeled and updated 2 bedroom, 1. 5 bath property, with a fenced in cemented yard and a… more
6 New Construction Homes For Sale in Northern Liberties
share
Introducing 6 NEW Construction Luxury Homes in Northern Liberties at 1018-1028 N Leithgow Street… 3 Bedrooms. 2. 5 Baths. Garages and full 12' tall Basements. View Larger Map Want the details? We thought so. Contact the… more
A Peek Inside a Stunning Point Breeze Home
share
Welcome to 1903 Annin Street in Point Breeze… a beautiful, immaculate 2 bedroom, 1. 5 bath property, with a fenced in cemented yard and a finished basement. This home has been completely remodeled and updated. Beautiful hardwood… more
Tip Jar: An Eater’s Guide to Philly!
share
Metro's Philadelphia Eater's Guide noted some of our favorite foodie destinations beyond cheesesteak purveyors… the often overlooked Philly is full of exciting new restaurant concepts and incredible chefs and dishes that don't often get the… more
Hip Home Alert: 223 W Oxford Street
share
Welcome to this fabulous row home just North of Northern Liberties on the tip of Old Kensington! 223 W Oxford Street was crafted by a fabulous Philadelphia designer and left nothing out! Walk into a spacious first floor where your living,… more
Lots to Love: 1244 E Fletcher Street
share
Scouting out your dream property in Fishtown? 1244 E Fletcher Street is a great block and awesome location to build new property! The possibilities are endless here. This is a great eighteen foot wide by one hundred ft garage/lot Street to Street… more
Fishtown Update! 2616 E Dauphin Street
share
Meet our… Fully UPDATED 3 Bedroom Home in Fishtown with 1 full bath and a 1st floor powder room, large unfinished basement and nice size rear yard. 2616 E Dauphin Street is ready for a new era. We welcome your visit… This home has an… more
No Libs Makes America’s Best Hipster Neighborhoods List
share
We've already been called one of the Best Cities for Hipsters No surprise then, that Northern Liberties makes the list of Forbes' America's Best Hipster Neighborhoods with the likes of Portland's Pearl District, Silverlake, and… more
OPEN HOUSE Bus Tour on Friday, Sept 21st & Saturday, Sept 22nd 12…
share
We have an exciting Open House Bus Tour opportunity this weekend! As part of CityLIFT Philadelphia the Affordable Home Tour event will include the below listings. Starting at noon, you can board a bus leaving every 30 minutes from the… more