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 2018 is $16,560,357,291.
  • 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 $15,300,305,091 92.39%
Aggregate Residential Assessments $1,260,052,200 7.61%
Total - All Assessments $16,560,357,291 100.00%
  • In order to be in compliance such that residential assessments were no greater than 5.00% of the total assessed value, an adjustment of $556,237,015 was required.  This adjustment results in a small decrease to the total residential share and a corresponding small increase to the commercial share of the assessed value.  These adjustments are spread pro-rata across all properties.
  • As a result, the revised total assessed values with respect to the 2018 billings are as follows:


Assessed Value Adjustments

  Revised Assessment
Total
Aggregate Commercial Assessments $15,856,542,106.13
Aggregate Residential Assessments $703,815,184.87
Total $16,560,357,291.00

To determine the total assessed charge used, pursuant to the adjustments above, we have provided example calculations 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 original Aggregate of the Commercial Assessments ($15,300,305,091) and multiplied this by the adjustment amount ($556,237,705). The result is $5,587,814.35. The calculation is as follows:

$100,000,000 ÷ $15,300,305,091 × $556,237,705 = $3,635,468.06

 

Assessment

$100,000,000.00

 

Adjustment

$3,635,468.06

  Total Revised Assessment Used for Billing Purposes $103,635,468.06

Based on this Assessment, CCD’s 2018 bill would be calculated as follows:

The assessed value of the property (as revised pursuant to HB1644) ($103,635,468.06), divided by the total assessed value of the CCD ($16,560,357,291) – equals a proportion that is then multiplied by our billing amount ($24,247,520). The result is the 2018 Charge ($150,920.19). The calculation is as follows:

$103,635,468.06 ÷ $16,560,357,291 × $24,247,520 = $151,742.08

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 $1,000,000, the calculation is as follows:

We take the certified assessed value provided by the OPA (in this example $1,000,000), which is reduced by 50% pursuant to the Municipalities Authorities Act to $500,000 and divided it by the original Aggregate of the Residential Assessments ($1,260,052,200) and multiplied this by the adjustment amount ($556,237,705). The result is a $220,720.10 reduction. The calculation based on $500,000 is as follows:

$500,000 ÷ $1,260,052,200 × ($556,237,705) = ($220,720.10)

 

Assessment

$500,000.00

 

Adjustment

($220,720.10)

  Total $279,279.90

Based on this Assessment, CCD’s 2018 bill would be calculated as follows:

The assessed value of the property (as revised pursuant to HB1644) ($279,279.90), divided by the total assessed value of the CCD ($16,560,357,291) – equals a proportion that is then multiplied by our billing amount ($24,247,520). The result is the 2018 charge ($406.70). The calculation is as follows:

$279,279.90 ÷ $16,560,357,291 × $24,247,520 = $408.92

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, 2018. 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.