April 24, 2012

Revised Common Level Ratio, Philadelphia 2012 Tax Assessment Appeals

2012 PA Tax Assessment Appeals – State Rules on Revised Common Level Ratio for Philadelphia

Good news came to property owners can file a tax assessment appeal challenging their 2012 Philadelphia Real Estate Tax Assessments. The ongoing dispute between the City of Philadelphia and the State Tax Equalization Board (“STEB”) resulted in a decision by STEB that found that Philadelphia’s attempt to maintain its pre-determined ratio of 32% of fair market value was not supported by the actual data on record and that the common level ratio (“CLR”) to be applied in pending Tax Assessment Appeals for 2012 would be 25.2%.

Although this was higher than the CLR originally issued by STEB last July (18.1%), the new figure still significantly lowers the assessed values of properties on appeal and, therefore, the real estate tax payable to the City. In addition, property owners who paid transfer tax on the basis of the 18.1% CLR in non-arms length transactions in 2012 will now be able to seek a refund of the excess payment.

All of this serves as a preview of the coming uncertainty over 2013 property assessments, including the likely implementation of the citywide Actual Value Initiative. Appeals in Philadelphia County for the 2013 tax year must be filed by Monday, October 1, 2012.

For more information regarding property tax assessment, appeal, and abatement matters, please contact Law Offices of Michael Kuldiner, P.C. (215) 942-2100  info@phillyesq.com