February 10, 2014– Mayor Michael A. Nutter reminded Philadelphians of the upcoming application deadline for PHL Tax LOOP, the Longtime Owner Occupants Program, a new real estate tax relief program for eligible Philadelphia homeowners. In December 2013, the City of Philadelphia began mailing information packets, including a pre-filled application, to properties based on preliminary eligibility requirements. The LOOP application deadline is February 17, 2014. Since February 17, 2014 is President’s Day applications for LOOP will be accepted until February 18, 2014.
“Our new property tax system is fair and accurate for all Philadelphians – but fairer and more accurate values meant large real estate tax increases for some homeowners,” said Mayor Nutter. “LOOP is a valuable discount for these homeowners and we have received more than 25,000 applications so far. I want to encourage every eligible Philadelphian to apply for this important discount before February 18thso that they don’t miss out on 10 years of real estate tax savings.”
Eligibility requirements for PHL Tax LOOP are as follows:
- The Tax Year 2014 market value of the property minus the $30,000 Homestead Exemption is triple the Tax Year 2013 property value;
- The property must be either a single-family dwelling or a multi-unit property with up to three residential units and one commercial unit;
- The property must be the primary residence of the owner since at least July 1, 2003;
- The property does not currently have or has never received a tax abatement;
- The real estate taxes for the property must be up-to-date; the owner must be current on an existing payment agreement or the owner must have applied to enter into a payment agreement; and
- The homeowner meets income requirements based on household size.
In order to qualify for LOOP real estate tax savings, applicants must meet all eligibility requirements and apply by February 18, 2014. Once approved, homeowners enrolled in LOOP will receive the real estate tax discount for 10 years.
The LOOP discount will vary based on property values. Approved LOOP applicants will have their Tax Year 2014 real estate taxes calculated using the Tax Year 2014 tax rate of 1.34% multiplied by three times the Tax Year 2013 property value.
All applicants will be notified by a decision letter by the end of March 2014. Due to the LOOP timeline, a new real estate tax payment procedure has been outlined for LOOP applicants:
- Homeowners applying for LOOP should pay the discounted amount indicated on the brochure received in the information packet by the real estate tax due date: March 31, 2014, or February 28, 2014 to receive an additional 1% discount.
- If approved, no further action is needed. If an application is denied, the property owner must pay the balance due, the difference between the reduced amount due with the LOOP discount and the amount due without LOOP, by April 30, 2014 to avoid interest or penalties.
If a homeowner pays real estate taxes through their mortgage company, the City will notify the mortgage company of the new amount due if the LOOP application is approved.
Eligible individuals should apply for LOOP whether or not they have received the Homestead Exemption.
Tax Year 2014 real estate tax bills for all Philadelphia properties were mailed in early December 2013.
For more information on LOOP and to print out an application, log onto: www.phila.gov/LOOP. For questions and assistance, please call 215-686-9200. Information is available online and by phone in multiple languages and the hotline will be open on February 17, 2013 even though the City is closed for President’s Day.
Applications should be mailed to the PO Box listed on the application or will be accepted in drop boxes located in the Municipal Services Building Concourse at 1401 John F. Kennedy Blvd. and at the 2 mini-City Halls (North – 22nd & Somerset Streets, Northeast – 9239 Roosevelt Blvd, Rear). Hours are Monday-Friday 8:30 am to 5 pm. All applications must be received by February 18, 2014.
In addition to these resources, the City of Philadelphia has created a helpful widget to determine if a property is eligible for LOOP. The “Am I Eligible?” widget is available through www.phila.gov/LOOP.