Property Assessment, Allegheny County (for sale, lawyers, buying a house)

[nynjmapa]

Generally speaking, if somebody purchases a house in Allegheny County, will the purchased price become the new assessed value of the house?

We are looking at a house which is priced significantly less than the previous owner's purchase price and the current assessed value. We are wondering/dreaming if the taxes will drop accordingly.

Additionally, is the assessment in Allegheny County based solely on the exterior of the house?

One would think that assessment value is based on market value, but I am not familiar with property taxes in Allegheny County.

[dura]

Check here for a blurb about how they claim to do it.

[scrapp]

Originally Posted by nynjmapa

Generally speaking, if somebody purchases a house in Allegheny County, will the purchased price become the new assessed value of the house?

We are looking at a house which is priced significantly less than the previous owner's purchase price and the current assessed value. We are wondering/dreaming if the taxes will drop accordingly.

Additionally, is the assessment in Allegheny County based solely on the exterior of the house?

One would think that assessment value is based on market value, but I am not familiar with property taxes in Allegheny County.

The assessed value will change only if you or a taxing body files an appeal. If you buy a house for significantly less than the assessed value and it is an "arms length" sale, you should definitely file an appeal. The appeal deadline for 2008 is March 31st, so you if you want to appeal for this year you need to close and appeal before then. The appeal form can be found here:

Property Assessments - Appeals

With the 2002 Base Year system, the appeal result is less certain (see my previous post), but is worth trying in this case.

Allegheny County assessments are not based solely on the exterior of the house. Comparable sale data is important. The 2002 assessments were generated by a Computer Aided Mass Assessment (CAMA) program. The CAMA program used the data on this web site:

Allegheny County Assessment

Go to the bottom of the page, click on OK, and look up a property. Note the information on the following tabs: "General Information," "Building Information," and "Comparables."

[nynjmapa]

Unfortunately, from reading this advice, it seems as though the answer is not black and white. And I wonder about the success rate of the appeal.

Regardless, thank you for the advice!

[Pghtebbie]

Personally, on a side note, I would worry about a house for sale that is listed significantly less than it's assessed value. I would want to know WHY.

If you are okay with that answer, then forget I said anything (ie if it's a family trade, owner is desperate, etc). If there is no reason, the neighborhood may seriously be on the decline. I would worry about something like that.

But really just my opinion. Take it or leave it

[BrianTH]

It sounds like some people have been successful at fighting an appeal when they have bought a house at a price above the assessment value. Does anyone know how they have done that? I am just curious about the arguments they may have used (since I may find myself in that position at some point).

[scrapp]

Originally Posted by BrianTH

It sounds like some people have been successful at fighting an appeal when they have bought a house at a price above the assessment value. Does anyone know how they have done that? I am just curious about the arguments they may have used (since I may find myself in that position at some point).

The key is to find comparable Base Year sales from 2002 that support your claims. The lawyers from the taxing body (likely your local school district) will do the same to support their claims.

Unfortunately, there is a random element to the process: you have no control over which Hearing Officer or Appeals Board Member is selected to handle your appeal. I personally believe that these folks are biased (in either direction) and the group as a whole does not handle appeals in a uniform manor. In other words, each one of them has their own idea about how a "Base Year" assessment system should work and they don't follow a consistent set of rules. This is one of the reasons we currently have a large number of home owners and school districts appealing the results of their initial appeals to the Board of Viewers.

The other thing that works against you is that the school district lawyers do appeals all the time. They know the system and they personally know all the Hearing Officers and Appeal Board Members.

[BrianTH]

Thanks, scrapp. We are thinking about buying a house and apparently the current owners have successfully fought off a couple attempts to raise their assessment, so if we decide to go ahead with the purchase hopefully they will have some good 2002 comparables to share with us.

[scrapp]

Originally Posted by BrianTH

Thanks, scrapp. We are thinking about buying a house and apparently the current owners have successfully fought off a couple attempts to raise their assessment, so if we decide to go ahead with the purchase hopefully they will have some good 2002 comparables to share with us.

Good luck! If you close after the appeal deadline (March 31st) then you will not have to worry about this until next year's deadline. Hopefully by that point the PA Supreme Court will have ruled on the constitutionality of the Base Year assessment system and we'll know if there will be a county wide reassessment or not...

[mikeshaw33]

We purchased our house in May 2008. The purchased price is much higher than the market value and the seller's purchased price in 2003.THe NA school district filed an appeal on our house and the hearing for reassessment is April 28. We feel being victimized twice by paying too much for the house and now might being taxed more. In addition to that, there is still a critical problem in the house not resolved. We are not able to sell this house if we want because that problem.Does anyone know what we should prepare for the hearing?Thanks a million.Julia