Submitted by 3RudySquared t3_10p3vnk in pittsburgh
ktxhopem3276 t1_j6i4pp6 wrote
The last time there was a county wide reassessment was 2012. When you buy a house, it can trigger a new reassessment. It is informally called a “newcomers tax” The new value is usually a lot higher than your neighbors who haven’t moved since 2012 because the math they use is questionable and the subject of ongoing lawsuits. If you bought a house that has a lot of updates, they will try to use the sale price to justify a lofty assessment value. You should look into how to argue for a lower assessment using facts and data.
https://www.pghfirm.com/blog/secrets-to-winning-your-allegheny-county-tax-appeal
https://www.reedsmith.com/en/perspectives/2022/11/allegheny-county-in-legal-limbo
https://www.publicsource.org/allegheny-county-property-tax-appeal-assessment-lawsuit-unbalanced/
3RudySquared OP t1_j6iemwn wrote
Thank you. This is useful.
Cutter70 t1_j6je8lk wrote
I have seen and heard about new assessments happening after a purchase when the purchase price was a certain value over existing assessment. I had heard the flag was $60-70k higher and has no bearing on whether there were improvements or not. Might matter on neighborhood too.
ktxhopem3276 t1_j6jflk5 wrote
The threshold for appeal is dependent on the locality. By improvements, I don’t mean additions or major modifications, I just mean the sale price was a lot higher than buying a fixer upper so more likely to get flagged.
burritoace t1_j6kof5d wrote
The assessment is supposed to be based on changes in value since 2012, it's not intended to pretend time stopped a decade ago.
ktxhopem3276 t1_j6kponm wrote
Yes the math gets fuzzy how much to attribute to inflation 63% or 81% and that’s what the lawsuit is over
Edit another way is 2.1% versus 4.7% compound annual growth rate
burritoace t1_j6kq6ma wrote
I think people assume that improvements etc should not count towards their reassessment but they absolutely should
ktxhopem3276 t1_j6kqd1q wrote
if the common level ratio is artificially low that will exaggerate the value of improvements and minimize the effect of inflation. And if you make improvement s and don’t sell your house you get an advantage over people who make improvements but do sell
burritoace t1_j6kvzng wrote
Right, which is why I question the motives of the people seeking to adjust the ratio way down
ktxhopem3276 t1_j6kw7i9 wrote
Do you think the 2.1% or 4.7% growth rate is correct?
burritoace t1_j6kyhqm wrote
I think it varies too much to set one number for the whole county, so the current system is stupid and should be replaced.
ktxhopem3276 t1_j6kzo6f wrote
Reassessing every 3-5 years would be a good middle ground. ten years is the absolute limit based on the current frequency of posts on Reddit. Every one or two years is a lot of effort for little benefit.
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