Interesting twist from Central Bucks School District, on Bucks County tax appeal issue.
The topic that has generated the most resposne and interest, in my blogging, has been the issue of filing real estate tax appeals in Bucks County. I have reported in previous posts, how easy the process is, and have offerred suggestions as to the best ways to go about filing appeals.
I have also posted on many occassions, that the number of appeals over the past couple of years, has increased tremendously.
This Sunday, the Courrier Times had an article that explained steps that at least one district is taking, in response to the tremendous increase in successful appeals. You can read the entire article, by clicking on the Courier Times link I created.
The article points out that more than 5,200 Bucks County property owners filed appeals to reduce their real estate tax assessments in 2009. The Central Bucks School District took an huge hit, incurring a $4 million dollar loss in revenue, according to district officials.
Tuesday, the Central Bucks School Board , voted to start filing their own appeals to increase assessments for properties that have been sold since last July that it feels are under assessed. The district is trying to increase revenues, without increasing the tax rate.
As the Courrier Times article points out, and as I have blogged about previously, property tax assessments in Bucks County, is a perennial source of controversy, because there has not been a Countywide reassessment since 1072. Therefore, many owners of newer homes feel that they pay too much tax, compared with older homes that have not been reassessed in decades.
Many tax assessment experts said that it is pretty much unprecedented for a school district to appeal certain residential properties on their own. It is also possible, as the article observes, that there will be unintended consequences for the district. It could create a great deal of uncertainty for folks considering buying houses in Central Bucks, because they potentially will not know what their real estate taxes will be, or possibly even if a particular house will have an appeal filed by the district.
The Central Bucks school board resolution outlined their procedure for identifying houses that are under assessed. Properties sold since July would be subject to a review to compare thet assessed value on record, with a theoretical assessed value based on the properties recent sale price. The theoretical assessment would be calculated by dividing the sale price by the common level ration, determined by the State Tax Equalization board. If the difference is more than 15% greater than the current assessed value, the district will consider an appeal. The decision to file, will also depend on whether the district could collect $500 or more in additional revenue over a 3 year period.
If an appeal is filed, the new taxes will only affect the new owner, and any increase would not take effect until July 2011.
The state assessment ratio for Central Bucks, is .1031. For example, a house that has sold for 300,000 should be assessed at $30,930. ($300,000 X .1031)
This is definitely an interesting twist on the Bucks County tax appeal issue. I fully expect that the levels of appeals will increase this year, over appeals in 2008 & 2009. More and more property owners all over Bucks County, feel that their properties are over assessed, based on the declines in the housing market. I realize that this creates a very difficult problem for school districts and municipalites, that depend on property taxes to pay for services. However, the fact remains, that there is a great deal of inequities in the property tax assessment, becuase of the lack of either rolling re-assessments or countywide reassessments. With a valid, competently prepared appraisal documenting fair market value, it is difficult, if not impossible, for the tax assessor to argue with a property owners assessment appeal.
If you need help understanding the appeal process, or would like the necessary form to file an appeal, please contact me, and I can help.
Continue Reading > Add a Comment |