How is my charge calculated?

Your annual charge is set by Commonwealth and City law and calculated by a formula that applies to all taxable properties, without regard to abatements, homestead exemptions and other exemptions provided by the City of Philadelphia. The following explains the CCD methodology to calculate the assessed charges for commercial and residential properties.

Practically, we calculated the adjustments as follows:

  • CCD relies upon the certified assessed values from the OPA to calculate its charges.
  • Upon receipt of the certified values, the CCD calculated the overall assessed value on which its bills are based (the CCD does not recognize abatements granted by the City of Philadelphia, nor any additional reductions to value such as the Homestead Exemption available to residential owner occupants). The total assessed value of all properties within the CCD in 2017 is $11,834,505,794.
  • Once these values were calculated, the CCD needed to test whether the aggregate residential assessments were greater than 5%, to determine if adjustment was necessary. As such, CCD segregated commercial values and residential values to ascertain the aggregate value of each component. The aggregate value profile was calculated as follows:
     

Certified Assessments Received from OPA

  $ % of Total
Aggregate Commercial Assessments $10,647,801,144 89.97%
Aggregate Residential Assessments $1,186,704,650 10.03%
Total - All Assessments $11,834,505,794 100.00%
  • Since the aggregate of residential assessments was greater than 5% of the total, an adjustment was required by law to decrease the residential share and allocate the difference across all commercial properties based on their unadjusted assessed value.
  • CCD then calculated a value for residential assessments that would equal 5% of the total assessments ($11,834,505,794 × .05 = $594,979,360). In order to reduce the aggregate residential assessed value to this figure, an adjustment of $594,979,360 was required ($1,186,704,650 - $594,979,360 = $591,725,290). Based on this adjustment, the revised assessment calculation is as follows:


Assessed Value Adjustments

  Original Increase/(Decrease) to Original Revised Assessment
Total
% of Total as Revised
Aggregate Commercial Assessments $10,647,801,144 $594,979,360 $11,242,780,504 95.00%
Aggregate Residential Assessments $1,186,704,650 ($594,979,360) $591,725,290 5.00%
Total $11,834,505,794 $0 $11,834,505,794 100.00%

To determine the total assessed charge used, pursuant to the adjustments above, we have provided an example calculation as follows:

For a commercial property with an assessed value of $100,000,000: We take the certified assessed value provided by the OPA (in this example $100,000,000) and divided it by the Aggregate of the Commercial Assessments ($10,647,801,144) and multiplied this by the adjustment amount ($594,979,360). The result is $5,587,814.35. The calculation is as follows:

$100,000,000÷$10,647,801,144×$594,979,360 = $5,587,814.35

 

Assessment

$100,000,000.00

 

Adjustment

$5,587,814.35

  Total $105,587,814.35

Based on this Assessment, CCD’s 2017 bill would be calculated as follows:

The assessed value of the property (as revised pursuant to HB1644) ($105,587,814.35), divided by the total assessed value of the CCD ($11,834,505,794) – equals a proportion that is then multiplied by our billing amount ($18,811,780). The result is the 2017 Charge ($167,839.26). The calculation is as follows: 

$105,587,814.35÷$11,834,505,794×$18,811,760= $167,839.26

For a residential property the calculation is similar; however, there would be a reduction in the assessed value. Therefore, assuming a residential property with an assessed value of $500,000, the calculation is as follows:

We take the certified assessed value provided by the OPA (in this example $500,000) and divided it by the Aggregate of the Residential Assessments ($1,186,704,650) and multiplied this by the adjustment amount ($594,979,360). The result is a $250,685.53 reduction. The calculation is as follows:

$500,000 ÷$1,186,704,650 × ($594,979,360) = ($250,685.53)

 

Assessment

$500,000.00

 

Adjustment

($250,685.53)

  Total $249,314.47

Based on this Assessment, CCD’s 2017 bill would be calculated as follows:

The assessed value of the property (as revised pursuant to HB1644) ($249,314.47), divided by the total assessed value of the CCD ($11,834,505,794) – equals a proportion that is then multiplied by our billing amount ($18,811,780). The result is the 2017 charge ($396.30). The calculation is as follows:

$249,314.47÷$11,834,505,794×$18,811,780= $396.30

How did the OPA arrive at its valuation which the CCD used to calculate my bill?

Based on its responsibility to set values for all properties, the OPA calculated a market value for your property which was the basis for the assessment that we used to calculate your bill. If you have further questions as to how the OPA arrived at your assessment, please contact them directly at 215.686.4334. 

When is my charge due?

Your charge is due no later than March 31, 2017. After this date, we may charge interest and penalties on the outstanding balance until your charge is paid. Charges to condominiums within the CCD are payable to the Condominium Association.