Property Tax Shift Overview
A feasibility study of the potential for a property tax shift onto land value, phasing out the tax on buildings and other improvements to property.
If Philadelphia were to adopt a land value tax today and split the tax rates such that equal amounts of revenue were collected from buildings and land, this would be the result:
Across the city, and including every class of property, almost three-quarters of Philadelphia would see a decrease in their annual tax bill and only a quarter would experience an increase to make up the difference. Among the specific classes of property, the results are even better:
Here, 80% of residential, 74% of apartments/hotels, and 58% of storefront properties will see a decrease, while 65% of commercial, 66% of industrial, and 100% of vacant properties will see an increase.
Incentive Taxation • September 2010 • Vol 37 No. 4
PA Chapter of the American Planning Association
