The city of Philadelphia has lost key documents proving whether fat tax breaks to some nonprofit institutions are justified.
Schools, hospitals, museums, community groups and other institutions enjoy property-tax exemptions worth millions of dollars each year. In return, they’re required to fulfill a charitable mission.
The city’s Office of Property Assessment is charged with riding herd over the institutions to make sure they truly qualify for a exemption. But the office is maintaining shoddy, incomplete records, raising questions about whether some groups are entitled to their tax exemptions.
When a nonprofit requests a break, the city is supposed to demand an application and inspect the parcel in person.
he University of Pennsylvania owns more than 110 tax-exempt properties, including those that are partially exempt. When WHYY asked to review the records, city officials could not find applications or inspection reports showing why 67 parcels qualify for tax breaks.
This doesn’t seem to be a unique situation. Of 14 properties owned by other tax-exempt nonprofits, ranging from a medical center to a housing group, city officials couldn’t locate applications for five.
Michael Piper, OPA’s deputy chief assessment officer, said several files disappeared during a move a few years ago.
“I remember one of the administrators that used to work here used to make the statement that, ‘The Egyptians would save things for 5,000 years. We can’t help but throw them out after 40 or 50 years,'” Piper said. “And I would agree.”
That’s unacceptable, said City Controller Alan Butkovitz.
“They lost the data in the move? Seriously?” he asked. “The dog ate their homework? What kind of explanation is that?”
Butkovitz, a vocal critic of the OPA’s recent reassessment, said the city should go back and verify that the institutions still deserve a tax break.
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