Owed nearly half a billion, Philly considers new way of collecting delinquent property taxes

The sweetened beverage tax is the most recent way that Philadelphia is trying to generate funds to ease its cash-strapped budget. Perhaps a less sweet way, though possibly more effective means, is a “tax lien securitization system.”

It’s a method by which the city would sell bonds backed by the debt, while retaining ownership as it seeks collection from the delinquent accounts. New York City has employed such a system for more than a decade and succeeded in increasing its collection rate from about 85 percent to nearly 99 percent.

City Councilman Allan Domb has made delinquent tax collection a priority, and he explained why he favors this method.