For commercial property owners, it is time to get in line.
Although its deadline for filing assessment appeals is typically March 31 of the year in issue, Allegheny County is providing a special appeals filing deadline for 2022 appeals. Due to uncertainty arising from conflicting determinations of the “common level ratio,” a key element in the assessment formula, the deadline for filing 2022 appeals has been extended to March 31, 2023. The County had been using a common level ratio of 81.1% of a property’s fair market value, but the Allegheny County Court of Common Pleas recently determined that 63.53% was the correct common level ratio. The change in common level ratio can make a big difference and result in substantial tax savings. To make it a bit too simple, a property valued at $100,000 would be taxed at $81,100, whereas the same property would be taxed at $63,530 under the potential new common level ratio. The common pleas decision is presently on appeal before the Commonwealth Court. Accordingly, the County opted to give all taxpayers a second chance to have an appeal pending when a determination becomes final.
The 2023 assessment deadline is also March 31, 2023, and it has already been determined that the common level ratio for this year is 63.6%. That is the lowest it has been for some time, so the prospects for tax savings are significant.
Your individual circumstances might call for the filing of appeals for both years. Please give John O’Keefe, Rachel Felton, or Steven Petrikis, our tax assessment litigators, a call, and let us help walk you through the confusing jargon and valuation analysis to determine if it is the right time to file for you. If your property has declined in market value for any reason, this may well be the best time to act.
This post was written by Steven Petrikis, John O’Keefe and Rachel Felton