Monthly Economic Report: Real Estate Tax Revenues Up 23% in Four Years

Audit Date: April 2, 2012
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
April 2, 2012

Contact: Brian Dries

Real Estate Tax Revenues Up 23% in Four Years
Controller Alan Butkovitz’ economic report includes review
of real estate tax collections for both the City & School District

Click here to view latest economic report

PHILADELPHIA – City Controller Alan Butkovitz today issued his latest economic report that found year-to-date real estate tax collections have increased 23 percent over the last four years. For the first eight months of FY12, a total of $880.8 million was collected compared to $716 million during the same period in FY08.

Of the total $880.8 million in real estate tax collections, $384.1 million went into the City’s General Fund and $496.7 million went to the School District. February’s monthly collections alone totaled $683.5 million, which includes both the City and School District’s portions.

The increase in real estate taxes is mainly due to the tax rate increases over the last two years. From 2008 through 2010, the total tax rate was 8.264%, a split between the City (3.305%) and School District (4.959%). The total tax rate in 2011 was 9.082% and for 2012 it’s 9.432%. The current 2012 portion split is 4.123% for the City and 5.309% for the School District.

The Controller also found the number of properties with real estate payments for an entire fiscal year increased from 471,645 in 2008 to 481,944 in 2011, or two percent. This is also a contributing factor to the increase in real estate tax revenues.

Along with reviewing real estate taxes, the Controller’s economic report indicated that after four consecutive months of declines the City’s non-seasonally adjusted unemployment rate increased by more than a point to 11.2 percent. The unemployment rate for the Philadelphia region increased at about the same pace, from 7.6 percent to 8.6 percent.

The Controller’s economic report is compiled on a monthly basis and includes an Economic Snapshot and Forecast, as well as real estate information and other local statistics. These reports are circulated every month to assist key decision makers in understanding and anticipating local and national economic trends. The Controller’s economic report is a useful tool for policy makers and analysts in understanding our regional and local economy.