Study Shows Ending Tax Abatements Doesn't Kill Property Values
Property values for homes aren't appreciably affected by an expiring tax abatement, a recent study published by Drexel University shows.
Since the inception of Philadelphia's 10-year tax abatement, about 58% of homes to have their abatements expire have been sold, a number not significantly different than the overall rate. Property value after the abatement's expiration was also shown to be statistically similar to all homes, according to the Philadelphia Inquirer.
Though some have claimed the abatement disproportionately benefits developers, Carl Dranoff said at a meeting of the Builders Industry Association of Philadelphia, "It is an annuity for the city, bringing in $2 for every $1 it forgoes."
Dranoff and other speakers at the event credited the abatement for the increase in development activity all over the city in the last decade and a half. [Philly]