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General Rules to apply for Real Estate Tax Exemption

All applicants seeking real estate tax exemption pursuant to the General County Assessment Law, Act of May 22nd, 1933, P.L. 853, as amended, 72 P.S. §5020-204, must submit the following documentation as may be applicable:

1. If the applicant is not the (an) owner of record, the applicant must submit a copy of an executed and notarized Power-of-Attorney verifying the authority of the applicant to act on the behalf of the owner(s) of record. The Power of Attorney must be dated and specify the tax year for which exemption in sought.

2. If the owner(s) of record is other than an individual, copies of the following documents must be submitted:

a.
Any and all Articles of Incorporation and amendments thereto.

b.
The Charter, By-Laws and all organizational documents and any amendments thereto.

c.
A complete and up-to-date audited income and expense statement pertaining to the owner(s) of record.

d.
A complete and up-to-date audited balance sheet or statement of assets and liabilities pertaining to the owner(s) of record.

e.
An audited and up-to-date statement of the salaries and wages paid to all officers, directors, principals and the five (5) highest salaried employees of the owner(s) of record.

f.
A statement which clearly indicates what statute governs the distribution of the assets of the owner(s) of record upon dissolution in the event the documents submitted in accordance with subsections (a) and (b), above, fail to disclose such information.

g.
A detailed up-to-date statement indicating all fund-raising activities conducted by the owner(s) of record.

h.
The deed, will, or other document or instrument evidencing the acquisition of the property in question.

3. If the property in question is income-producing, the applicant must submit a complete and up-to-date audited income and expense statement pertaining to the property.

4. If the owner(s) of record is a non-profit association, organization, or other legal entity, copies of the following documents must be submitted:

a.
Internal Revenue Service letter granting non-profit status.

b.
Proof of non-profit status granted by the Commonwealth of Pennsylvania.

c.
An affidavit executed by the owner(s) of record or an authorized representative that none of the income of the non-profit entity inures to the benefit of any individual, shareholder, incorporator, principal, member of the Board of Directors or other governing body of the owner(s) of record, other than salaried employees of the owner(s) of record, unless documents submitted in accordance with subsections (a) and (b) of Paragraph No. 2, above, contain such a statement, in which event the applicant shall identify the document(s) and page number(s) where such a statement is made.

5. If the owner(s) of record is tax exempt under the provisions of the Internal Revenue Code, the applicant must submit a copy of the Internal Revenue Service letter granting tax exempt status.

6. In the event any portion of the property is leased or otherwise permitted to be used by any individual or legal entity other than the owner(s) of record, the applicant must submit a copy of any and all leases or other documents evidencing the lease or permissive use arrangement. If no written lease or documents evidencing the permissive use or arrangement exist, the applicant must submit an affidavit executed by the owner(s) of record or an authorized representative which contains the following information: a. Identity(ies) of the lessee(s) or user(s) b. Amount of rent or other consideration paid by such lessee(s) or user(s); and c. Terms of such lease(s) or permissive use arrangements.

7. In the event any of the documents submitted in accordance with these Rules are updated or amended prior to any written decision of the Board of Revision of Taxes, the applicant must provide the Board with such updated or amended documents as soon as they are available.

8. A written statement by the applicant or its authorized representative showing how the use and ownership of the property comply with the provisions of Act 55 of 1997 (10 P.S. §371 –385) known as “The Institutions of Purely Public Charity Act”.

9. Any other documentation which many be requested by the Board of Revision of Taxes in order to reach a decision with respect to the property’s real estate tax exemption.


Revised April 2005 RULES TAX EXEMPTION