Day: May 29, 2012

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AVI Without Tears

  By Philadelphia, Philadelphia Budget, Taxation

I have an op-ed in today’s Daily News about AVI. I think the argument there is correct, but it is highly compressed. I’ve tried to set out my argument at a little greater length here. (Note that in the op-ed and in this piece I made a mistake and said that AVI shifts the tax burden from residential to commercial property. It does the opposite. I’ve corrected it here. Councilman Green’s proposals minimize the shift.) So much has gone wrong in the city’s move to the Actual Value Initiative (AVI), that many people are fearful about its consequence. And one of the things that has gone wrong is that people who know better are playing on this fear for their political purposes, I think the fear is over blown. AVI is a good thing if it is implemented properly and I think it can be implemented properly this year. Continue reading

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Homeowners, Don’t Fight the AVI—It’s Good for You

  By Philadelphia, Philadelphia Taxes, Taxation

 Originally published in the Daily News, May 29, 2012 A great fear seems to have come over the city as the heavy footsteps of a monster called AVI come ever closer to us. It’s time to recognize, however, that that monster is a friendly creature who will benefit most of us. Partly because tax matters are hard to understand and partly because Mayor Nutter wants to raise more revenue for schools from the real-estate tax, public discussion of AVI — Actual Value Initiative — has become confused. No one trusts any government, and some people in office or thinking of running for office can’t resist the temptation to be demagogues about any issue. So, the confusion has created the false belief that AVI is just a tax increase in disguise. We desperately need to get back to some basics: AVI is about tax fairness. And, under it, most Philadelphians will see… Continue reading