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Blog

Friday, July 26, 2019

What is an accurate property assessment?

Posted by: Pete Kennedy on Friday, July 26, 2019 at 12:00:00 am Comments (0)

Ideally, homes are assessed at 100% of their market values. That’s what happens immediately after a countywide reassessment.

But assessment values become inaccurate over time as the real estate market changes. To keep new assessments in line with old ones, the PA Department of Revenue sets a Common Level Ratio factors for each county every July.  

For example, Montgomery County has 2019-2020 ratio factor of 2.03, meaning assessments should equal 49.3% of market value.  So, a home with a market value of $100,000 would be assessed at about $49,300, and that assessed value would be used to calculate local property tax bills.

Here’s the math behind that percentage:

Assessment
_______________

Market Value


   =   

1
______________

2.03
(Common Level Ratio factor)


   =   


    49.3%  

Here are the Common Level Ratios and assessment value percentages for Greater Philadelphia counties:

9.4%
Bucks County
Common Level Ratio factor = 10.64
Last assessment in 1972
49.3%
Chester County
Common Level Ratio factor = 2.03
Last assessment in 1998
56.5%
Delaware County*
Common Level Ratio factor = 1.77
Last assessment in 2000
49.3%
Montgomery County
Common Level Ratio factor = 2.03
Last assessment in 1996
99%
Philadelphia County
Common Level Ratio factor = 1.01
Ongoing assessments (AVI)
 

This recent Philadelphia Inquirer article provides more explanation on assessments and appeals in the Greater Philadelphia region.

 * Delaware County is currently conducting a countywide reassessment, the values of which will take effect in 2021. Learn more about that in our blog post:  Delco reassessment project: an overview.

 

 

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