Serving the Community for over 40 years |
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| PRACTICE AREAS |
The rise in ratios obviously reflects falling market
values but since the number of transactions in 2008
in the various counties was often less than half of the
previous year (remember that the Delco, Chesco etc.,
2008 sales ratios are published by the PA STEB in
June of 2009 and used for the 2010 tax year and
are really the ratio of transactions occurring in 2008 )
so the real drop in values will be reflected in the 2009
transactions which are used for the 2011 CLR.
This means that the implied fair market values
caused by dividing the Assessment by the CLR (e.g. a
$1,000,000 assessment in Delco in 2009 implies a
value of $1,715,266 ($1,000,000 divided by .583 or )
while the same $1,000,000 divided by .613 implies a
value for 2010 of $1,631,321. That’s a value drop of
$83,945 or only 4.83% of the $1,715,266 BUT
between August 1, 2008 and August 1,2009 in the
real world expected fair market value drops on some
properties of 20% to 40% or more are not unusual.
So, in my example, if formerly the $1,000,000
properly assessed property was worth $1,715,266 as
of 8/1/08 and that property lost 35% of its value, it
would be worth $1,114,922 and should be assessed in
Delco at $683,448 not the $1,000,000, an
assessment difference of about $317,500 and a tax
difference (savings if one appeals) at say 33 mills of
close to $10,000 on one property for one year.
Each property has it’s own value and there are
significant differences in municipalities, school district
and counties but if ever there were a year to review
one’s assessments this is it! Feel free to call and
review you assessment to see if an appeal is
warranted. Have a recent tax bell available with
assessment and folio number for reference.
values but since the number of transactions in 2008
in the various counties was often less than half of the
previous year (remember that the Delco, Chesco etc.,
2008 sales ratios are published by the PA STEB in
June of 2009 and used for the 2010 tax year and
are really the ratio of transactions occurring in 2008 )
so the real drop in values will be reflected in the 2009
transactions which are used for the 2011 CLR.
This means that the implied fair market values
caused by dividing the Assessment by the CLR (e.g. a
$1,000,000 assessment in Delco in 2009 implies a
value of $1,715,266 ($1,000,000 divided by .583 or )
while the same $1,000,000 divided by .613 implies a
value for 2010 of $1,631,321. That’s a value drop of
$83,945 or only 4.83% of the $1,715,266 BUT
between August 1, 2008 and August 1,2009 in the
real world expected fair market value drops on some
properties of 20% to 40% or more are not unusual.
So, in my example, if formerly the $1,000,000
properly assessed property was worth $1,715,266 as
of 8/1/08 and that property lost 35% of its value, it
would be worth $1,114,922 and should be assessed in
Delco at $683,448 not the $1,000,000, an
assessment difference of about $317,500 and a tax
difference (savings if one appeals) at say 33 mills of
close to $10,000 on one property for one year.
Each property has it’s own value and there are
significant differences in municipalities, school district
and counties but if ever there were a year to review
one’s assessments this is it! Feel free to call and
review you assessment to see if an appeal is
warranted. Have a recent tax bell available with
assessment and folio number for reference.
| 2010 STEB RATIOS MAY MANDATE A REAL ESTATE TAX APPEAL DEPENDING ON YOUR LOCATION |
| APPEAL DEADLINES |
- August 1, 2009 is the filing date for 2010 Real
Estate Tax Assessment Appeals to the Boards
of Assessment for:
Bucks, Delaware, and Chester Counties
- September 1, 2009 for:
Montgomery
* These filing dates are also the valuation
dates for the tax year appealed- 2010.
Estate Tax Assessment Appeals to the Boards
of Assessment for:
Bucks, Delaware, and Chester Counties
- September 1, 2009 for:
Montgomery
* These filing dates are also the valuation
dates for the tax year appealed- 2010.
The new Delaware County Common Level Ratio
(CLR) to use for 2010 is 61.3 (it was 58.3 for 2009)
The new Chester County 2010 ratio is 53.0
compared to 51.7 and Montco is 54.0 vs 50.8 last
year. See my website for the other Pennsylvania
County CLR’s and appeal filing dates.
NEW STEB RATIOS
| WHAT THIS MEANS FOR YOU |
| The KASSAB ARCHBOLD & O'BRIEN, L.L.C. web site is intended for informational purposes and is not intended to provide legal advie. Visitors to this site should not act upon any information contained within this site without consullting with competent counsel. Transmission and receipt of materials from this site is not intended to create an attroney-client relationship, nor should the reader consider the infromation to be the agreement to an attorney-client relationship. Any communcication with KASSAB ARCHBOLD & O'Brien, L.L.C. by those who are not already clients of the fim would not be considered priveleged and may be subject to discovery. |
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