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State and Local tax issues require state and local tax knowledge. SALT Blawg provides exactly that knowledge with news updates and commentary about state and local tax issues. You can expect to find relevant information about topics such as income (corporate and personal) tax, franchise tax, sales and use tax, property (real and personal) tax, fuel tax, capital stock tax, bank tax, gross receipts tax and withholding tax. SALT Blawg, offers tax talk for tax pros… in your neighborhood.

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Questions Raised Over City of Philadelphia's Continued Use of Ratio for Real Estate Tax Assessments

  by Stewart Weintraub and Jennifer Weidler

Each year the Pennsylvania State Tax Equalization Board ("STEB") calculates and publishes the common level ratio ("CLR") for each county in the state.  The Pennsylvania General County Assessment Law provides that there cannot be more than a 15% differential between the STEB CLR and the county's Established Predetermined Ratio ("EPR"). 72 P.S. § 5020-511(c).  For decades the STEB CLR for Philadelphia County fell slightly below, but within 15% of the county's EPR of 32%.  This year marked a drastic change for Philadelphia.  For tax year 2012, the STEB CLR fell to 18.1%, a differential significantly greater than 15%.

Since the STEB CLR and the EPR differ my more than 15%, questions have been raised concerning how the City Philadelphia ("City") will address the issue.  Recently, inquiries were made regarding the City's position during the Philadelphia Local Taxes CLE program sponsored by the Pennsylvania Bar Institute and the Philadelphia Bar Association Tax Section.  However, representatives from the City did not directly respond to questions.    Instead of adjusting the EPR to conform with the STEB CLR, the City plans to maintain the same 32% EPR it has used for decades.  The program also addressed updates from the City and practitioners relating to various Philadelphia taxes, including the wage and net profit tax, business privilege tax, transfer tax, and use and occupancy tax.  For an audio copy of the program, click here.

Categories: Pennsylvania
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    Mr. Weintraub’s practice has centered on taxation for more than 40 years. He helps clients plan and structure transactions so that all state and local tax obligations are minimized. He represents clients in all aspects of state ...