PHILADELPHIA- Efforts by the Department of Revenue to reduce property tax delinquency paid off in the past fiscal year, according to figures released today by Revenue Commissioner Frank Breslin.
Fiscal Year 2017, which ended on June 30th, saw a significant decrease in the number of delinquent accounts and in the total amount due the City for property taxes. Specifically, nearly nine thousand properties were removed from the delinquency roles in the past year. Over the last four years, the total delinquent taxes owed to the City has been reduced by 31 percent.
“Philadelphians rightly want to know whether the City is doing enough to ensure that taxes are collected,” said Mayor Jim Kenney. “The results we’re seeing show real progress toward a better collection rate, even as we enhance protections for those who are struggling.”
About a third of remaining delinquent properties are currently in payment agreements, representing $52 million in Real Estate Tax owed. These payment agreements protect property owners from enforcement actions and mounting interest and penalties, while at the same time enhancing the City’s ability to collect. Eighty-nine percent of delinquent taxes are owed by Philadelphia residents. Only 11 percent is owed by out of state residents and residents in other parts of Pennsylvania outside of Philadelphia.
“The Revenue Department is committed to aggressive but compassionate collection of property taxes,” said Revenue Commissioner Frank Breslin. “Our goal is not to sell a property but to ensure that taxpayers are compliant, either paid in full or enrolled in a payment agreement. It is a balancing act, but one that we are achieving.”
Nearly 30 percent of delinquent properties owe less than $500 and 43 percent owe $1,000 or less. Accordingly, the City has to find the most efficient and effective means of collection. Overall, the City spends less than one cent to collect each tax dollar, focusing primarily on prevention of delinquency and consistent enforcement. Revenue has made it easier for property owners to stay compliant, with more frequent, clearer bills, free online payments via eCheck, and expanded outreach to enroll homeowners for tax relief and payment plan programs to keep bills affordable.
For property owners not taking the steps to get back on track, the Department has enhanced enforcement through many tactics, including increased Sheriff Sales, earlier placement of overdue accounts with collection agencies, and using behavioral science to improve notices and bills to increase payments. Property owners can get information about tax relief and payment plan options at www.phila.gov/revenue, via email at revenue@phila.gov or calling 215-686-6442.