New Jersey millionaire Mehmet Oz is using a $50,000 tax credit meant for Pennsylvania small farmers on one of his many multi-million dollar homes. While exploiting this tax loophole for his own financial gain, Oz is not even living on the property.
Philadelphia Inquirer: Mehmet Oz scored a $50,000 annual tax break on his $3.1 million Montco manor
Julia Terruso, Ryan W. Briggs, and Jonathan Tamari
08/09/22
Key points:
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Oz purchased a farmstead for $3.1 million in December 2021 with a property value of $1.52 million.
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The tax incentive is part of a controversial state program designed to encourage the preservation of farm or forestland that overwhelmingly benefits wealthy landowners like Oz.
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And while Oz says he’s simply awaiting renovations before he moves into his new multi-million dollar home, there’s little sign of work at the property, and he continues to live at his in-laws’ home in the nearby borough of Bryn Athyn.
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Oz applied for Act 319, the Pennsylvania Department of Agriculture’s “Clean and Green” tax incentive, in March 2022. He knew that the tax loophole would reduce the property value of the farmland to $447,930, which is $1 million less than the assessed value.
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While the property taxes benefit the Lower Moreland School District, Oz is only responsible for paying $21,473 instead of $72,000 in annual taxes.
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Richard Booker, a Pennsylvania tax attorney, opposes Oz’s ability to exploit Act 319. “I’m a conservative tax lawyer, and I’m for lower taxes and smaller government. But I don’t believe in these kinds of tax benefits for anyone,” he said. “They’re always unequal, and they never work.”
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According to the state preservation program, Oz is not allowed to develop the land, despite already starting renovations on the property.
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