In a case that involved a few of the city’s most prominent luxury condo buildings, a judge has ruled that Philadelphia’s method for assigning land values to nearly 300 condo units with 10-year tax abatements was improper and not credible. Common Pleas Court Judge Idee C. Fox ordered the city to refund taxes to condo owners involved in the case, who own units in two buildings on Rittenhouse Square and in the Residences at the Ritz. In the case of one unit in the 1706 Rittenhouse Square building, the ruling will reduce the 2019 tax bill by 70 percent, from $6,053 to $1,843. The case involved the city’s 2017 changes to the way it assigns value to the land underneath buildings, which significantly increased tax bills for many property owners with the 10-year abatement for new construction, who pay taxes only on the value of their land. Lawyers for the condo owners said the case could impact assessments and tax bills for new condos as they are built, because the ruling criticized the city’s method of assigning land values. The city is “considering its options moving forward,” said Mike Dunn, a spokesperson for Mayor Jim Kenney’s administration.
Source: Philadelphia Inquirer; 7/24/2019
