Property Tax Assessment
As a Realtor in Pennsylvania and an Associate Real Estate Broker, I have confronted property tax assessments and property tax assessment appeals for a number of years. The interim assessments for residential construction have always struck me as unfair to new home buyers. Under Pennsylvania and US laws the assessment of property is to be “uniform” with same properties in the taxing district. New home owners should pay their fair share of taxes but not more.
Through my company, Reliant Property Management, Inc. (a licensed Real Estate Company in Pennsylvania) I have retained counsel to represent the property owner/clients of my firm before the local Boards of Assessment. Our attorney is an experienced practitioner of real estate tax assessment appeals with over 200 previous appearances before local tax assessment boards. We have been able to reduce our client’s tax bills by an average of 18% and have obtained tax reductions in 85% of the cases presented. There is no guarantee your results may be this great but we will not take your case unless we believe we can appeal your tax assessment and achieve a result that will make it worth our effort. If we don’t reduce your property tax liability we will not charge you a penny.
HOW PROPERTY TAX ASSESSMENT WORKS
The tax years in Pennsylvania are as follows:
Township or Borough or County taxes are billed for a tax year beginning January 1.
School District taxes are billed are on a fiscal year beginning July 1.
It is not realistic to assess every real property every year. Pennsylvania has established a system of yearly equalization of property values. This is done annually by the State Tax Equalization Board (STEB). http://www.steb.state.pa.us/ Each year the STEB compares real estate sales in each county with the actual assessment of the properties and publishes a ratio called the Common Level Ratio (CLR). The objective is to make certain that current tax assessments reflect the current market without having to do an individual property appraisal each year. This CLR is effective on July 1 of each year which corresponds with the school district’s fiscal year.
INTERIM REAL ESTATE TAX ASSESSMENT
An interim tax assessment is issued within a few months of the sale and possession of a newly constructed residence. The homeowner has 40 days from the date of the notice to appeal her assessment. The purpose of the new assessment is to recognize the improvements to the property caused by the construction of a new home and the ensuing increase in value. The old assessment was probably just the value of the unimproved land. The tax bill begins on the date of issuance of the interim assessment but can be appealed retroactively unlike regular assessment tax appeals which are not effective until the next taxing year. The taxing counties have been doing pretty well in applying the correct CLR to new construction since several court cases ruled against taxing authorities who were using the actual sale price of the home as the assessed value instead of a modified assessment bases on the current CLR.
The tax bill begins on the date of issuance of the interim assessment but can be appealed retroactively unlike regular assessment tax appeals which are not effective until the next taxing year. If you think your interim assessment is too high we would be happy to take a look at it and compare with like properties in the same county. No charge for that!!
EXISTING REAL ESTATE TAX ASSESSMENTS
Here’s where things get interesting. If you have bought a home in the last few years, you might have paid less that the original sales price. The property tax assessment will not change unless you appeal. You could be paying a few hundred to a few thousand dollars more that your neighbors for comparable property. If you have purchased new construction and the falling real estate market has caused your home to lose value you can appeal the old assessment. You should have a new appraisal or if you can show comparable properties that have lost value and been re-appraised at times that alone will be sufficient.
When you file an appeal you will be given a date to appear before the Board of Appeals in a somewhat informal hearing where you can state your case. The board will take your presentation under advisement and issue a finding within a few weeks.
There are time limits for these appeals. Most counties allow appeals from March 15 or April first to August or September 1. You must check your county for the exact dates. If you are successful in your appeal you will see a statement from the county showing the reduction in your appraised value. You will see your tax benefit on the first tax bill in January for County, township or borough. Your savings will begin on the following July for your school taxes.
You can appeal the finding of the Board if you believe their decision was not correct. This appeal goes to court and your costs can suddenly be significant.
HOW RELIANT CAN HELP
We will compare your assessment against those of like properties and determine if you have a chance of substantially reducing your tax bill. We will give you our best opinion of what you might expect from a re-appraisal. If you decide to use our services, our attorney will file the appeal and our attorney will represent you before the board. You do not have to attend the hearing.
FEE ONLY WITH REDUCTION OF ASSESSMENT
If our appeal is unsuccessful you will not be charged for our services. There will be no charge for any service.
WE FILE THE APPEAL ON YOUR BEHALF
Our attorney will file the appeal on your behalf as your representative in court. Only the homeowners or their designated attorney may appear before the board to appeal an assessment
YOU DO NOT HAVE TO ATTEND THE HEARING
Our attorney can represent you without your being present at the hearing. You are certainly welcome to attend if you wish.
RESULT BASED FEE
Our fee is 50% of the total first year tax savings. No savings – no fee. Our fee is due when the Board of Assessment issues their notice of reduction of appraisal. The new appraisal should be in effect for 5 to 7 years. We do accept credit card.
Here are a couple of real examples from Chester County:
Chester Springs, West Vincent Township.
- Originally sold for $706,000 in 2004 with tax appraisal of $526,000. The current published millage for West Vincent Township is 31.7950. This means that for every $1,000 of appraised value the annual tax is $31.80. The tax bill for this house is $16, 736.
- This home sold for $580,000 on 7/09. Taxes are still based on the original appraisal. When the current CLR (Common Level Ratio) of 1.89 is applied to the new sales price this home is being assessed as if it were currently valued at $994,140. If we take the sale price of $580,000 and apply the current CLR the appraised value should be $306, 878. This would result in a new tax bill of $9,757. A potential savings of $7,000 annually.
Downingtown, East Brandywine Township.
- Originally sold for $750,000 in March of 2008. with tax assessment of $446,000. The current published millage for East Brandywine Township is 31.9400. This means that for every $1,000 of appraised value the annual tax is $31.94. The annual tax bill for this home is $14,262.
- This home sold for $625,000 in June of 2009. When the current CLR (Common Level Ratio) of 1.89 is applied to the new sale price this home is being assessed as if it were currently valued at $842,000. If we take the sale price of $625,000 and apply the current CLR the appraised value should be $331,000. This would result in a new tax bill of $10,572. A potential savings of $3,690.
As a Realtor in Pennsylvania and an Associate Real Estate Broker, I have confronted property tax assessments and property tax assessment appeals for a number of years. The interim assessments for residential construction have always struck me as unfair to new home buyers. Under Pennsylvania and US laws the assessment of property is to be “uniform” with same properties in the taxing district. New home owners should pay their fair share of taxes but not more.
Through my company, Reliant Property Management, Inc. (a licensed Real Estate Company in Pennsylvania) I have retained counsel to represent the property owner/clients of my firm before the local Boards of Assessment. Our attorney is an experienced practitioner of real estate tax assessment appeals with over 200 previous appearances before local tax assessment boards. We have been able to reduce our client’s tax bills by an average of 18% and have obtained tax reductions in 85% of the cases presented. There is no guarantee your results may be this great but we will not take your case unless we believe we can appeal your tax assessment and achieve a result that will make it worth our effort. If we don’t reduce your property tax liability we will not charge you a penny.
HOW PROPERTY TAX ASSESSMENT WORKS
The tax years in Pennsylvania are as follows:
Township or Borough or County taxes are billed for a tax year beginning January 1.
School District taxes are billed are on a fiscal year beginning July 1.
It is not realistic to assess every real property every year. Pennsylvania has established a system of yearly equalization of property values. This is done annually by the State Tax Equalization Board (STEB). http://www.steb.state.pa.us/ Each year the STEB compares real estate sales in each county with the actual assessment of the properties and publishes a ratio called the Common Level Ratio (CLR). The objective is to make certain that current tax assessments reflect the current market without having to do an individual property appraisal each year. This CLR is effective on July 1 of each year which corresponds with the school district’s fiscal year.
INTERIM REAL ESTATE TAX ASSESSMENT
An interim tax assessment is issued within a few months of the sale and possession of a newly constructed residence. The homeowner has 40 days from the date of the notice to appeal her assessment. The purpose of the new assessment is to recognize the improvements to the property caused by the construction of a new home and the ensuing increase in value. The old assessment was probably just the value of the unimproved land. The tax bill begins on the date of issuance of the interim assessment but can be appealed retroactively unlike regular assessment tax appeals which are not effective until the next taxing year. The taxing counties have been doing pretty well in applying the correct CLR to new construction since several court cases ruled against taxing authorities who were using the actual sale price of the home as the assessed value instead of a modified assessment bases on the current CLR.
The tax bill begins on the date of issuance of the interim assessment but can be appealed retroactively unlike regular assessment tax appeals which are not effective until the next taxing year. If you think your interim assessment is too high we would be happy to take a look at it and compare with like properties in the same county. No charge for that!!
EXISTING REAL ESTATE TAX ASSESSMENTS
Here’s where things get interesting. If you have bought a home in the last few years, you might have paid less that the original sales price. The property tax assessment will not change unless you appeal. You could be paying a few hundred to a few thousand dollars more that your neighbors for comparable property. If you have purchased new construction and the falling real estate market has caused your home to lose value you can appeal the old assessment. You should have a new appraisal or if you can show comparable properties that have lost value and been re-appraised at times that alone will be sufficient.
When you file an appeal you will be given a date to appear before the Board of Appeals in a somewhat informal hearing where you can state your case. The board will take your presentation under advisement and issue a finding within a few weeks.
There are time limits for these appeals. Most counties allow appeals from March 15 or April first to August or September 1. You must check your county for the exact dates. If you are successful in your appeal you will see a statement from the county showing the reduction in your appraised value. You will see your tax benefit on the first tax bill in January for County, township or borough. Your savings will begin on the following July for your school taxes.
You can appeal the finding of the Board if you believe their decision was not correct. This appeal goes to court and your costs can suddenly be significant.
HOW RELIANT CAN HELP
We will compare your assessment against those of like properties and determine if you have a chance of substantially reducing your tax bill. We will give you our best opinion of what you might expect from a re-appraisal. If you decide to use our services, our attorney will file the appeal and our attorney will represent you before the board. You do not have to attend the hearing.
FEE ONLY WITH REDUCTION OF ASSESSMENT
If our appeal is unsuccessful you will not be charged for our services. There will be no charge for any service.
WE FILE THE APPEAL ON YOUR BEHALF
Our attorney will file the appeal on your behalf as your representative in court. Only the homeowners or their designated attorney may appear before the board to appeal an assessment
YOU DO NOT HAVE TO ATTEND THE HEARING
Our attorney can represent you without your being present at the hearing. You are certainly welcome to attend if you wish.
RESULT BASED FEE
Our fee is 50% of the total first year tax savings. No savings – no fee. Our fee is due when the Board of Assessment issues their notice of reduction of appraisal. The new appraisal should be in effect for 5 to 7 years. We do accept credit card.
Here are a couple of real examples from Chester County:
Chester Springs, West Vincent Township.
- Originally sold for $706,000 in 2004 with tax appraisal of $526,000. The current published millage for West Vincent Township is 31.7950. This means that for every $1,000 of appraised value the annual tax is $31.80. The tax bill for this house is $16, 736.
- This home sold for $580,000 on 7/09. Taxes are still based on the original appraisal. When the current CLR (Common Level Ratio) of 1.89 is applied to the new sales price this home is being assessed as if it were currently valued at $994,140. If we take the sale price of $580,000 and apply the current CLR the appraised value should be $306, 878. This would result in a new tax bill of $9,757. A potential savings of $7,000 annually.
Downingtown, East Brandywine Township.
- Originally sold for $750,000 in March of 2008. with tax assessment of $446,000. The current published millage for East Brandywine Township is 31.9400. This means that for every $1,000 of appraised value the annual tax is $31.94. The annual tax bill for this home is $14,262.
- This home sold for $625,000 in June of 2009. When the current CLR (Common Level Ratio) of 1.89 is applied to the new sale price this home is being assessed as if it were currently valued at $842,000. If we take the sale price of $625,000 and apply the current CLR the appraised value should be $331,000. This would result in a new tax bill of $10,572. A potential savings of $3,690.