Reassessment rears its ugly head (California, Penn: real estate, how much, homes)

[BrianTH]

Rather than halt the reassessment of Allegheny County--which we have already spent a ton of money on, and is only going to become less accurate and more contentious as time passes--the state should just be passing a law so that every other county also gets regularly assessed.

[squarian]

Originally Posted by BrianTH

Rather than halt the reassessment of Allegheny County--which we have already spent a ton of money on, and is only going to become less accurate and more contentious as time passes--the state should just be passing a law so that every other county also gets regularly assessed.

I agree, the Gen Ass should deal with the issue. But there are two obstacles:

1) to be anything more than tinkering around the edges, such legislation would need to take a holistic view of local and especially education funding, with a view to ending the zip-code lottery inequalities endemic in PA. In other words, local government finance requires root and branch reform.

2) for at least the last twenty years, the Gen Ass has been utterly, flatly incapable of any such effort, on any topic, under any leadership, of whatever party. In other words, the state legislature requires root and branch reform.

Given these considerations, any attempt by Harrisburg to address this issue will be piecemeal and patchwork: the proof of which was the July 1st bill temporarily suspending reassessment in one county, for immediate political considerations and in the hope that a real solution would eventually fall out of the sky.

Therefore, I see two likely scenarios. The first is that county leaders persuade the Gen Ass to take the patchwork route, suspending Allegheny Co's reassessment. The second is that Wettick's decree stands, the reassessment proceeds (not quite) on schedule, the (any) methodology raises an outcry, and after the expenditure of much more blood and treasure, the Gen Ass is persuaded to take the patchwork route, suspending Allegheny Co's reassessment.

[CaptainPittsburgh]

Originally Posted by BrianTH

Rather than halt the reassessment of Allegheny County--which we have already spent a ton of money on, and is only going to become less accurate and more contentious as time passes--the state should just be passing a law so that every other county also gets regularly assessed.

As much as I don't want to, I agree with you. I hate to admit it, but regular assessments statewide seems more logical and fair than our current system (or lack thereof). As an individual, I'd rather my home never be assessed again so I can save money, but in terms of overall fairness and generating revenue appropriately, regular assessments for all makes much more sense.

[CaptainPittsburgh]

Originally Posted by squarian

Therefore, I see two likely scenarios. The first is that county leaders persuade the Gen Ass to take the patchwork route, suspending Allegheny Co's reassessment. The second is that Wettick's decree stands, the reassessment proceeds (not quite) on schedule, the (any) methodology raises an outcry, and after the expenditure of much more blood and treasure, the Gen Ass is persuaded to take the patchwork route, suspending Allegheny Co's reassessment.

That sounds so miserable, I really hope you're wrong. I feel like you're not going to be wrong, haha.

[WILWRadio]

Originally Posted by CaptainPittsburgh

As much as I don't want to, I agree with you. I hate to admit it, but regular assessments statewide seems more logical and fair than our current system (or lack thereof). As an individual, I'd rather my home never be assessed again so I can save money, but in terms of overall fairness and generating revenue appropriately, regular assessments for all makes much more sense.

I'd be willing to bet that rural counties and also those that have stagnant growth have fought tooth and nail to keep assessments on properties to a minimum. In a way it makes sense.

If you live in a rural county such as Venango it is very unlikely that property values have increased in recent years. The same can also be said for so many areas of the state in the current economy. Until some new development takes place which in turn may help to increase property values, it makes little sense to revalue the properties which have likely gone down in value. Unless they raise the mill rate to compensate, these cities and towns could easily end up with less revenue from a reassessment.

I wonder if the oil and gas that has been discovered in the region is having an impact yet on property values? When that happens and prices of housing start to rise then I would be willing to bet you'd see some more reassessments taking place.

[CaptainPittsburgh]

Originally Posted by WILWRadio

I'd be willing to bet that rural counties and also those that have stagnant growth have fought tooth and nail to keep assessments on properties to a minimum. In a way it makes sense.

If you live in a rural county such as Venango it is very unlikely that property values have increased in recent years. The same can also be said for so many areas of the state in the current economy. Until some new development takes place which in turn may help to increase property values, it makes little sense to revalue the properties which have likely gone down in value. Unless the raise the mill rate to compensate, these cities and towns could easily end up with less revenue from a reassessment.

I wonder if the oil and gas that has been discovered in the region is having an impact yet on property values? When that happens and prices of housing start to rise then I would be willing to bet you'd see some more reassessments taking place.

I see your point. I'm not well read on this subject at all. I just bought my first home this year, so I've been learning.

I grew up in a really rural county. Their last assessment was in the seventies. I guess I just assumed that in situations like these the property values would generally increase, but that's probably a poor assumption. Nonetheless, in my brain, I think there is just some notion of fairness that is satisfied by the idea of across the board regular assessments, haha.

[BrianTH]

Originally Posted by squarian

Therefore, I see two likely scenarios. The first is that county leaders persuade the Gen Ass to take the patchwork route, suspending Allegheny Co's reassessment. The second is that Wettick's decree stands, the reassessment proceeds (not quite) on schedule, the (any) methodology raises an outcry, and after the expenditure of much more blood and treasure, the Gen Ass is persuaded to take the patchwork route, suspending Allegheny Co's reassessment.

I think the most likely scenario remains the reassessment takes effect (at a delay).

In part I believe that because if we can just get to the point where people get their new assessments and also learn their new tax rates, suddenly a lot of people will realize the process has been good for them, and a lot of other people will realize the process hasn't been all that bad for them. A few people will still complain, but they will now be counterbalanced by the people who don't want to give up their gains.

[BrianTH]

Originally Posted by WILWRadio

I'd be willing to bet that rural counties and also those that have stagnant growth have fought tooth and nail to keep assessments on properties to a minimum. In a way it makes sense.

I'd agree that if property prices in a jurisdiction have been flat or declining more or less across the board, a reassessment isn't necessary (and they can in fact be costly). So I would be fine with some sort of mechanical trigger mechanism for reassessments to avoid such unnecessary reassessments.

Of course presumably Allegheny County would satisfy any reasonable trigger (really, that was what the court case was about).

[squarian]

Originally Posted by BrianTH

I think the most likely scenario remains the reassessment takes effect (at a delay).

I think we know two things useful to making predictions: first, the past several attempts suggest there will be a loud howl of pain across the county, and second, the politicians' instinct for the popular cause seems to be pointing in the same direction.

You might be right, that the people will get their assessments, read and think carefully, and conclude everything's just fine. Problem is, with so many tiny little jurisdictions, overlapping school and municipal, and no clear information at that moment of truth about revised millage rates, hardly anyone will know whether the new assessment means their taxes will go up or down. And since people tend to worry about such things, howling is likely.

[robrobrob]

I think California locks in your purchase price as you assessed value. Years ago they passed a measure that made this the law. My friend has a house assessed at 600,000 and his neighbor has an assessement of 25,000 with a larger house.