Property Assessment Appeals
Often, you are paying too much in property taxes compared to other people in your municipality with similar current market valuations. Reassessments in Pennsylvania are done sporadically by each county, and are often done infrequently. For example, Bucks County has not performed a countywide reassessment since 1972! As a result, there is a significant difference between the assessed value and the real market value of your property due to changes in real estate values.
Property Assessment Appeals FAQ
How are my property taxes calculated?
Your school, municipal, and county taxes are determined by the assessed value of the property, multiplied by the millage rate, divided by 1000. For example, say your assessed value of your property is $100,000, and the millage rate is 50 for your school taxes. Your school taxes are calculated as follows:
100,000 x 50 / 1000 = $5,000
The same calculation is also done for your county and municipal taxes, and other taxes such as an open space, fire, or library tax.
How does my assessed value relate to my actual property value?
The assessed value is based upon the theoretical value of your property at the last time there was a countywide reassessment in your county. This occurred anywhere between 1972 in Bucks County to 2020 in Delaware County. You can find the assessed value of your property on your property tax bill or on your county’s board of assessment website.
To then determine what the county believes is the fair market value of your property, you would multiply this assessment value by a number called the Common Level Ratio Factor. Current Common Level Ratio Factors for all counties in Pennsylvania can be found here.
For example, the current Common Level Ratio Factor for Bucks County is 12.05. Let’s take a home in Northampton Township with the assessment of $34,000 as an example. To determine what the county believes the fair market value of the property is, you would multiply the assessment by the Common Level Ratio Factor.
$34,000 x 12.05 = $409,700
So, how do I know if I should file an appeal?
After doing the calculation above, if you believe the fair market value of your property is HIGHER the number, you should NOT file an appeal, because your property taxes are actually lower than they should be. If however you believe the fair market value of your property is LOWER than the number, you may benefit from filing an appeal.
I want to go forward with an appeal. What is the next step?
Contact us and we will discuss the steps required to file an appeal.
What are the fees and costs for me?
Our legal fee is contingent on the amount of money that you save. Therefore, if your appeal is not successful, you will owe us nothing. We also pay the filing fee to the county.
In most cases, an appraisal is not necessary for residential appeals. We can usually prepare a comparable sales report and submit that to support your appeal.
We recommend that you have a property appraisal in the following circumstances:
Your home has a market value above $800,000.
The potential tax savings is greater than $4,000 per year.
Your home is substantially larger or smaller than others in your neighborhood, or is otherwise not like others in your neighborhood (such as a house built in 2005 in a neighborhood where most homes were built in the 70s)
Your property is not habitable in its current state, or has substantial defects that would make it significantly less desirable than most properties.
You recently filed for an assessment appeal and were denied.
If you recently bought your property, you may have an appraisal that was completed as part of your purchase. We normally can use that appraisal as part of the evidence we submit to support your claim, but it is not as good as an appraisal completed for the appeal. You would be responsible for the costs of the appraisal, which can be performed by any licensed Pennsylvania appraiser, however, due to the volume of business we send our appraisers that we work with, normally their fees are lower than if you got an appraisal on your own.
For commercial properties, an appraisal is highly recommended, and is required in some counties.
Do I need to attend the hearing?
While you are welcome to attend the hearing, there is no requirement for you to do so. This is another advantage of hiring an attorney to represent you.
When will my tax reduction take effect and is it retroactive?
A successful annual assessment appeal will be effective in January and the assessment is not retroactive.
What other special situations can you assist with?
Sometimes, when you make an addition on your house, such as adding a pool or a shed, the county may send you a notice of an Interim Assessment Change. When this occurs, you have a set deadline to file an appeal as indicated on the notice that is different than an annual appeal. If you receive notice of an Interim Assessment Change, contact us immediately to find out your options.
Also, you may have represented yourself at the Board of Assessment Appeals level and received a poor decision. We can help potentially appeal this decision to the Court of Common Pleas in your county. Appeals to the Court of Common Pleas are more formal and we strongly recommend that you hire an attorney, whether it be us or another firm, to represent you for this type of appeal. We have experience in filing Court of Common Pleas appeals in Bucks, Montgomery, Berks, and Delaware counties.
Lastly, you may own a property that the school district appealed in an attempt to increase your assessment. Please contact us immediately if you get a notice from the Board of Assessment Appeals that the school district is appealing your assessment. We have represented clients in Montgomery, Delaware, and Berks County defending appeals filed against property owners.