Property tax assessment appeal: Should you appeal your property assessment in Philadelphia County, Pennsylvania?
House owners in Philadelphia County are fully familiar with the concern of real estate tax; those that have actually invested their lives in areas where these taxes are generally high feel the impact more than most. The effect of these taxes can be even worse for those who have actually lived in their properties for a long time, as they have experienced firsthand the taxes increase every year. But the bad news is possibly overpaying your real estate tax and be entirely uninformed. Here are some common factors individuals are overpaying their residential properties tax.
Is your Philadelphia County home over assessed?
A high property assessment is the primary reason that individuals appeal the dollar amount they are paying on their property taxes. In a lot of cases, people feel that the valuation placed on their home does not reflect the market value need to they try to offer it today. The simplest way to discover this out is to call some local realtors. They should be able to inform you the range of values comparable residential properties are selling for in your location. Keep in mind, the actual value of your property will not be realized up until a sale is closed. When you receive your house assessed value, you will be given a 30-day window in which to appeal any valuation. Otherwise, you will have to wait until next year to appeal.
Can you get the actual market value of your house?
It is probably worthwhile to call a local realty representative or your assessor in Philadelphia County, Pennsylvania. If you feel your home has been severely overvalued, an expert evaluation might show very cost-efficient in the long run
Many do not know you are not allowed to contest your property tax bill in Pennsylvania, however you can unquestionably lodge an assessed value appeal, keep in mind that regardless of how you feel about the costs, if you don’t pay, it can lead to the foreclosure of your house.
To successfully appeal, you will require to reveal at least three comparable homes that have been assessed at a lower assessment value. The closer these properties are in size and location to yours, the higher the chance of success you will have on appeal
Particular scenarios that may have minimized the value of your property
If there are exceptional circumstances that straight lead to the reduction of your residential property value and these are not reflected in your house assessment, these are clear grounds for appeal. Just offer evidence of these situations, and the appeals procedure should be straightforward.
You have recently bought your home in Philadelphia County, Pennsylvania for lower market value than the assessment value
If you have proof of the purchase price of your home or you possess a current appraisal that does not show the amount your home has been valued at by the assessor, this is clear premises for appeal. If an expert evaluates your property much lower than that of the assessed value, this is substantial proof to support your petition. You can always pay for a new appraisal although this will cost a couple of hundred dollars it could be worth it in the end. The bright side is that you do not have to accept a high real estate assessment; you can always appeal and get them reduced at the same time.
How do you appeal your property assessment value in Philadelphia County?
Every State has their own criteria for real estate assessment value appeals. One thing they all have in common; the only argument that they will accept is that your home has actually been evaluated higher than itreal market value. As your Philadelphia County real estate taxes are computed basically by multiplying the assessed value of your home by its areas set tax rate, you do not have any grounds to appeal the tax rate just the real estate assessment value. Your only avenue of approach is to show your house is less than the value the assessor thinks.
On receiving your house assessed value, your county will offer you a predetermined window in which to appeal. These can differ substantially from 30 to 90 days so your county appeal deadline is the first thing you want to determine. However, keep in mind if you miss this deadline there’s absolutely nothing you can do, and you will be required to wait a more year for a chance to appeal your home assessment value!
The fastest and easiest way to file an appeal in Philadelphia County is to do so on the website of your county, town or city. The fees related to each appeal can differ based on the initial value of your house assessed value. The cost of an appeal varies could be as little as $10 to $100, depending on where you live.
The first step in the procedure is to guarantee that your local tax assessor has included the right real estate info to start with. Sometimes, information may be incorrect such as, houses have been lifted with basements that do not exist; such examples are wrong and could lead to your home value being reduced immediately. The more information that you can gather regarding why you feel your home is overvalued, the more powerful your case for an appeal.
If there are no clear problems with the information on your property, you will need to find information of similar homes in your area that have a lower assessment. This will be the easiest method to prove your case. You will want to find 3 or four homes that are all the same size as yours, in the same area, whose value is much less lower than your own; this will be your premises for appeal.
In some areas, you’ll be asked to go to a property appeal hearing, so if this does occur, do not be daunted. In general, these hearings are just called to enable you to present the information you‘ve gathered in support of your claim. You will also be permitted to take a look at any incorrect info that might be on file about your home. You must be prepared for this hearing and have all the information you have actually collected about comparable homes and sales of comparable houses in Philadelphia County.
Be ready for the tax assessor to argue his/her counter-argument. One of the most popular ones here is that your home in concern is more modern-day than the ones you’re comparing it to. Be prepared for such an argument because if you get to this point, the Assessor believes you are not deserving of a reduction in assessment and will want to win his/her case by elaborating on the facts to support their case. It’s is always essential to remember that there are no additional penalties attached to filing an appeal; the worst outcome being that your home assessment value is the same.
Is it worth submitting an appeal?
If you really feel that your house has been miscalculated, a successful appeal of your Philadelphia County property assessed value could result in significant cost savings. If there are only a few hundred dollars of prospective savings, it might not deserve your time. You also need to consider that the hearing could be scheduled during a workday, which may result in a loss of revenues. Find out as soon as possible when the hearings take place, and will it be a teleconference or in-person hearing. This way you can make the appropriate arrangements to possibly eliminate wage loss.
How Property Taxes Are Calculated On A Home
Property tax is probably the fairest tax collected by municipalities. However, it is also probably the un-fairest tax collected by municipalities.
The state where an individual lives determines how much they pay, which may be higher or lower. An individual's economic status can also be a factor in how this type of tax impacts their pocketbook.
In fact when it comes to the decision on taxes and renting versus owning, this may be the only time renting is the best option. States collect property taxes on:
- Improvements to land such as additions to property
- Man made objects that are not stationary structures
It is usually assessed by individual county tax collectors in each state. Land and property are mailed tax payment notices that are the result of appraisals of the property's value. Notices of assessments can be disputed by contacting the tax collector in the land owner's county, and the tax bill is typically paid from a homeowner's escrow amount on their mortgage.
As mentioned, property taxes can disproportionately affect some homeowners. Increases in a state's tax rate can often double or even triple a homeowner's tax liability and often leave them with no option but to sale their residence or land.
Critics of this form of taxation have also decried the fact that it does address the situations of some individuals. Although it is ordinarily paid as part of an escrow account, increased property tax means they would have to pay more into escrow.
Senior citizens on a fixed income have been identified as a group sometimes hit hard by taxes on their property. Such individuals may have high taxes due to an increase in the value of their property, yet find them selves unable to pay because of a reduced income during retirement. This mandatory tax, in some cases, does not take into account factors that may impact someone's ability to pay, such as personal tragedy or acts of nature.
Property tax has also been criticized because of the difference individuals must pay between states. Alabama has the lowest rate at 1.3 percent on property value, while New Hampshire has the largest at 4.9 percent. The average percentage among is somewhere in the range of 2.3 percent.
While Alabama has a tax rate of 1.3, which would seem to make it an attractive location for a home or business owner, someone with property a few feet away in neighboring Georgia would have to pay 2.6 percent, and more than double in Florida with a tax rate of 3.1 percent.
Just how to spend the revenue (or waste it, as is the case with many governments) generated by taxing property values is determined by state legislatures. A state's legislature also has say over reducing or raising the tax rate along with determining how often it should be collected. Additionally, there may also set limits on how much increase, if any, there can be every year.
Property tax definitely helps states with revenue. But while much needed, property tax can also be a deciding factor in where an individual lives or their ability to retain the American Dream of owning land.