NEWS BRIEFS

Stay up to date on current News & Issues.

General News
Opportunity zones added to Realtors® Property Resource

Bucks County
Morrisville hears $100M redevelopment plan

Chester County
Affordable homes subject of 2020 Citizen Planners meeting

Delaware County
Clifton Heights sues Upper Darby schools 

Montgomery County
Lower Pottsgrove schedules sneak peek at new township building plans 

Philadelphia County
Why new houses in Philadelphia (and elsewhere) aren’t made of brick 
 

 

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.

 

 

Designed and delivered by Accrisoft