Property Tax Assessment Appeal Deadline Approaching
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2020 and 2021 have been difficult for many classes of real estate and some clients have seen values erode due to disruptions such as retail and office closures, eviction moratoriums, etc. If you have a property that has suffered, you should consider a tax valuation appeal.
07.21.21
In Pennsylvania, your “computed value” is the assessed value multiplied by a factor called the “common level ratio.” If you feel that your FMV as of January 1, 2022, will be lower than the property’s computed value and that an appraiser will back this up, you should consider a tax assessment appeal.
The deadline for filing property tax assessment appeals in all counties outside of Philadelphia and Allegheny counties is August 1, 2021. In Philadelphia, it is October 4, this year. No appeals can be filed for 2022 after those deadlines. Outside Philadelphia, all cases will be heard by October 31, 2021, and decided shortly thereafter. There likely will be substantial delays in the scheduling of Philadelphia cases.
As you probably know, local school districts may appeal assessments, claiming the property is under-assessed and asking that the assessment be increased. While most school districts only file appeals if properties are sold, some are undertaking reviews of high-value properties. There are currently a large number of cases seeking to limit the power of school districts to file selective appeals.
If you feel your property is materially under-assessed or receive a notice of an appeal filed by a school district, please contact a member of our tax appeals group to discuss how to move forward. Due to lower interest rates and other economic factors, some classes of property have appreciated in value since March 2020. We do not recommend trying to benefit from COVID-19 disruption if your property has not gone down in value. By putting value in play, you risk an increase in your assessment.
Co-authors Larry Arem and Matt McHugh are partners and Leslie Gerstein is Of Counsel in the tax appeals group at Klehr Harrison.