City council voted 15-2 on Thursday to disband the Board of Revision of Taxes next year.
The bill creates two new agencies, one responsible for setting property values and another that would hear assessment appeals. Voters must approve the decision in May.
Council President Anna Verna says the new system will ensure transparency in assessments and appeals.
The Board of Revision of Taxes had been in charge of both duties.
The board has drawn heavy criticism since The Philadelphia Inquirer published reports that have raised questions about the management of the agency and the accuracy of its assessments.