The report also says Philadelphia's inability to do better at collecting property taxes has cost the city and its schools $60 million in each of the last two years.
Many of the problems long have been identified - the amount owed to the city in back taxes, penalties, and interest has been accumulating for decades and stood at $522 million in April.
City Council held hearings on tax delinquency this year, and a Pew Charitable Trusts report estimated $155 million in back taxes was collectible.
Mayor Nutter announced a series of efforts to improve collections, including the creation of a new post in his cabinet, the chief revenue collections officer.
The city has increased the number of properties offered for sheriff's sale, and fiscal year tax collections were up this year, said Finance Director Rob Dubow.
The city has not moved closer toward a tactic endorsed in the Butkovitz report - selling liens placed on tax delinquent property to third-party investors.
The report estimated that liens on two-thirds of the 99,000 tax delinquent properties would be attractive to investors.
The report also says the city needs to place an emphasis on preventing delinquencies, particularly by reaching out to the large number of homeowners without mortgages.
The report recommends allowing those homeowners to pay taxes in monthly installments. A bill that would allow monthly installments is nearing passage in Harrisburg.