Tax and neighborhood question (Pittsburgh, Dormont: 2015, houses, neighborhoods)

[WhoIsStanwix?]

Originally Posted by jea6321

homestead exemption lowers the assessed value by 18k dollars. It gives you a break on all 3. in the city, it equates to a total tax savings of $407 per year. Allegheny ratio or multiplier is 1. Other counties use various ratios.

So help me understand this - reassessment values are based on 2012 values, correct? So if I buy a house in 2017 and my assessment is at purchase price, there is no mechanism to account for price inflation between 2012 and 2017? Ignoring all of the other disparities in property taxation, this one seems like a really difficult one to swallow.

[asalbeag]

The common level ratio is applied to the fair market value to get the assessed value. The current rate is 1.14 in Allegheny County, but this is an inverse so 0.877 is the number you want.

If you (the owner) lives in the house then the homestead exemption is also applied which takes about 18000 off the assessed value.

Example: You buy a house for 200,000 and get reassessed in 2017. You lose the appeal and the board approves the fair market value of 200,000. Your assessed value will be 175,438.60. If you're eligible for the homestead exemption that will come down to 157,438.60 which is what your taxes will be calculated on for the municipality, the county and the school district.

[T. Damon]

Originally Posted by RogersParkTransplant

The Northside comes to mind as an area that might interest you -- there's a range of neighborhoods over here that might fit the bill, depending on what you're really looking for in "transitional" neighborhoods. There's a strong LGBT presence in the Mexican War Streets and surrounding areas, like Deutschtown, though it's not an exclusively gay neighborhood by any means -- just an area where it's not unusual to see rainbow flags etc. If you want cool topography, Troy Hill or Spring Hill could work, or maybe over on Observatory Hill or Fineview. Since you're an architect it's worth noting that the Northside has some of our best 19th century architecture, including interesting renovations, some new construction that blends well with the old, and some shells that could be rehabbed and turned into whatever you wanted. Prices have been climbing, but speaking as a San Diego native myself I doubt you'd have any sticker shock given where you're coming from. Another area that leaps to mind reading your post is Mt Washington -- there are some really cute homes up there and it's a nice community.

The first ring suburbs do include some nice little towns too; Millvale is the closest one to us and therefore the one we know best, but there's more, and other posters will chime in about those. The housing stock in Millvale isn't the greatest, but it's possible to find some cute homes that are walkable to breweries, restaurants, and some limited retail.

That's funny. I've never heard of Mexican War streets and our Pittsburgh friends just posted a bunch of pictures on Facebook after a home and garden tour there. Looks very cool.

On prices I was looking at this 6 br/5ba gorgeous Victorian mansion for sale for $349k!! In Regent Square and literally laughed out loud sitting next my husband showing him and he just said "Holy Sheet"! Haha. That won't even get you a 2 car garage much less a 1br crappy condo out here.

Thanks again everyone for all the info. The tax maze is especially interesting. Our taxes out here in CA are fairly straightforward so it's all a learning process. I love the fact that it is actually cheaper in the city- where we would almost certainly want to be if we were to relocate there.

Can't wait for the visit there.

[WhoIsStanwix?]

Originally Posted by asalbeag

The common level ratio is applied to the fair market value to get the assessed value. The current rate is 1.14 in Allegheny County, but this is an inverse so 0.877 is the number you want.

If you (the owner) lives in the house then the homestead exemption is also applied which takes about 18000 off the assessed value.

Example: You buy a house for 200,000 and get reassessed in 2017. You lose the appeal and the board approves the fair market value of 200,000. Your assessed value will be 175,438.60. If you're eligible for the homestead exemption that will come down to 157,438.60 which is what your taxes will be calculated on for the municipality, the county and the school district.

Does the common level ratio change each year, so that a purchase price in 2019 would be adjusted for market inflation?

[Paul2421]

Originally Posted by T. Damon

That's funny. I've never heard of Mexican War streets and our Pittsburgh friends just posted a bunch of pictures on Facebook after a home and garden tour there. Looks very cool.

On prices I was looking at this 6 br/5ba gorgeous Victorian mansion for sale for $349k!! In Regent Square and literally laughed out loud sitting next my husband showing him and he just said "Holy Sheet"! Haha. That won't even get you a 2 car garage much less a 1br crappy condo out here.

Thanks again everyone for all the info. The tax maze is especially interesting. Our taxes out here in CA are fairly straightforward so it's all a learning process. I love the fact that it is actually cheaper in the city- where we would almost certainly want to be if we were to relocate there.

Can't wait for the visit there.

Wilkinsburg is an outlier with the extreme difference in taxes. Most city/suburb comparisons in pittsburgh are pretty much the same or one area is slightly more/less expensive depending on salary/cost of house. city limits are also pretty small geographically so you could be outside the city but still closer to the center than in other cities.

[asalbeag]

Originally Posted by WhoIsStanwix?

Does the common level ratio change each year, so that a purchase price in 2019 would be adjusted for market inflation?

Yes, you can find the list of previous values in the link in my post above.

[svband76]

Maybe you should think outside the typical box of East End, etc. neighborhoods that are at times wildly overpriced as far as housing and look towards up and comings. Dormont is 5 minutes from downtown, has the transit train running right through it, is walkable and has larger, cool, older larger homes that are affordable at $150-175k. Friendly down to earth people and in the midst of a positive changeover. The last single screen movie theater in the area (Hollywood), two excellent Thai restaurants, etc. Give it a look. Here's a place that would be listed at twice the price in any East End neighborhood.

https://www.realtor.com/realestatean...-73877#photo25

[Paul2421]

Originally Posted by zalewskimm

Maybe you should think outside the typical box of East End, etc. neighborhoods that are at times wildly overpriced as far as housing and look towards up and comings. Dormont is 5 minutes from downtown, has the transit train running right through it, is walkable and has larger, cool, older larger homes that are affordable at $150-175k. Friendly down to earth people and in the midst of a positive changeover. The last single screen movie theater in the area (Hollywood), two excellent Thai restaurants, etc. Give it a look. Here's a place that would be listed at twice the price in any East End neighborhood.

https://www.realtor.com/realestatean...-73877#photo25

west view is similar to the north. better car accessibility but not as many amenities for some reason. park and ride has easy access though but have to drive to it in most cases.

[WhoIsStanwix?]

Originally Posted by asalbeag

Yes, you can find the list of previous values in the link in my post above.

Thanks. This definitely demystified an area of property taxation that I was having trouble understanding.

[T. Damon]

Originally Posted by zalewskimm

Maybe you should think outside the typical box of East End, etc. neighborhoods that are at times wildly overpriced as far as housing and look towards up and comings. Dormont is 5 minutes from downtown, has the transit train running right through it, is walkable and has larger, cool, older larger homes that are affordable at $150-175k. Friendly down to earth people and in the midst of a positive changeover. The last single screen movie theater in the area (Hollywood), two excellent Thai restaurants, etc. Give it a look. Here's a place that would be listed at twice the price in any East End neighborhood.

https://www.realtor.com/realestatean...-73877#photo25

Exactly the kind of neighborhood we would consider. Being close to the T is awesome.

That house is just about perfect and you are right it is a great price compared to the already "arrived" areas that are becoming pricy, even for Pittsburgh.

Thanks! Will absolutely explore this.