Pennsylvania law requires uniformity in taxes, so that every taxpayer is treated the same as other taxpayers in the same situation. Each county has its own system, which leads to big differences in results -- and those differences get exaggerated over time.

Until recently, in Allegheny County the "assessed value" was set equal to one quarter of the actual fair market value. Other Pennsylvania counties have assessment values (according to state research) in ratios ranging from 1.00 up to 8.85!

Then came the lawsuit(s). In 1996, a group of citizens sued, claiming that the system was unfair and illegal, since so many properties were assessed either too low or too high, and that many owners were therefore not paying their proper, uniform share. Close

Through many twists and turns, the courts, including the PA Supreme Court, ultimately agreed, and ordered a county-wide reassessment. In response to court orders, the County adopted new assessment values or systems in 2001 and 2006 for all properties, and has been under orders since 2009 to again perform a complete reassessment for the 2012 tax year.

To do so, county officials sent all owners questionnaires in the mail describing the existing detailed information about their homes – number of rooms, bedrooms and baths, heating and air conditioning, parking or garages, etc. – and provided an opportunity for homeowners to correct any mistakes. Then, county assessors viewed each address from the street. New assessments were to be based not only on each house's specific facts but also on location and neighborhood trends. Close

Home values are mostly based on sales of comparables, or nearby similar properties. "Fair market value" can be defined as the price that a knowledgeable, willing buyer would pay to a knowledgeable, willing seller.

The best evidence of real value for your home comes from comparisons to actual sales of comparable homes, where the value is established in the ongoing marketplace between all buyers and sellers, and not by comparing your assessed value to the assessed value of other nearby homes. (It's theoretically possible but very difficult in practice to win an assessment appeal based on lack of uniformity between your individual assessment and others' assessed values.) Values reflected in actual recent sales are key.

By comparing actual sale prices to assessed values, we learn that more modest homes are often assessed too high, and more expensive homes are often assessed too low. That means poorer folk generally pay more than they should, and richer folk generally pay less. (That was complaint in the original lawsuit.) |

Therefore, you can expect that if your home is larger, fancier and in a nice neighborhood, then your assessed value, and your tax bill, may go up.

Maybe I'm naive, but I think many people are willing to pay their fair share. However, they don't want to be taxed unfairly as a result of excessive assessments about their homes. Close

First, make sure you are receiving your mail from the County about reassessments reliably, at the right address. Don't miss the deadline to appeal if you need to. Many Pittsburghers stay put for a long time, but if you've moved or had trouble in the past getting your tax assessments or bills for any property, confirm your mailing address to be sure you don't miss getting your new assessment notice. Call the County at 412-350-4134 or log on. (To change your address for tax bill mailing, call separately to the County Treasurer's office at 412-350-4100. If both addresses need to be changed, you must contact both offices.)

Second, review your property description by visiting the Allegheny County Department of Real Estate in the County Office Building in downtown Pittsburgh, logging online, or by calling the Department at 412-350-4226 for more help.

Third, if you think you may get a big increase and may need to appeal, gather your ammunition for the fight. Did you refinance your mortgage recently? The private appraisal (an opinion as to value given by an expert in a private setting) is good evidence if it shows a lower value. Obtain contractors' estimates of the cost to fix needed repairs to help you to prove a lower present value. If you made improvements recently, prepare to show that the total amount you invested was less, not more.

Remember that sale prices of nearby comparable homes, not your neighbors' assessed values, comprise the important information. Sales of comparable properties are typically compiled by experts for you during an appeal, but you can keep notes of similar nearby residential sales as well.

To explore the County database of property assessments, go to the website noted above. Find your property record by street name (which can be tricky with some names) and house number. You can search for recent comparable sales yourself with a little coaching and practice. Close

Should you appeal? Take caution, though: some big increases are still not worthwhile appealing. If you aren't likely to be able to prove with proper evidence that the new value is too high and should be reduced, then don't waste your time.

Who can help you pursue an appeal? Some attorneys handle a lot of assessment appeals and are experienced in this area. Others offering this service are likely not licensed and regulated by the state as attorneys are. Attorney fees for a tax assessment appeal may be in one of several forms: as a fixed fee amount; as an hourly fee for time spent working on your case; as a portion of your tax savings if you win your appeal; or perhaps as a combination of these types of fees.

Appeals are heard initially in an administrative proceeding – that is, within the department, and not in court. A second-level appeal will go into the courts.

Be an informed consumer. Always ask questions. Always ask what the fee will or won't cover (such as a second level appeal if needed) and what will cost extra. Ask about the chance of success for your appeal in order to decide if you should go forward or not.

Remember that you still have to pay your taxes even if you appeal the assessment. If you win, you will get a refund. Also, many owners qualify for certain kinds of abatement, or tax reduction.

The future is hard to predict, let alone politics or taxes. As reassessment progresses, watch for news that may affect you, including the delays that are expected as deadlines to pay and to appeal may be extended beyond the usual dates.

No one likes to pay taxes, but tax fairness and equity is a worthy goal to pursue. Close