Assessments rolled back to a 2002 base year:
Allegheny County has rolled back the property tax assessment to what is now considered the 2002 base year. The legality of this action has been tested and upheld in the Court of Common Pleas, by Judge R. Stanton Wettick Jr. Until further notice or until some other future action, this base year will stand and the applicable property assessments will remain in effect. However, certain improvements made after 2002 may increase the assessment for individuals. So what does this mean?
Property Tax Calculation:
Property will carry the same assessed value as in 2002, and County, Borough and School taxes will be calculated based on that assessed value. These governments must budget accordingly or increase the tax millage. There will not be "back door" windfalls.
Based on these changes, what is the Property Assessment and how are the taxes calculated?
First the tax rates:
County tax rate = .00469 or 4.59 cents per $1,000 of assessed property value.
Jefferson Hills Borough tax rate = .00563 or 5.63 cents per $1,000 of assessed property value.
West Jefferson School District tax rate = .01999 or 19.99 cents per $1,000 of assessed property value.
(Other communities would have different rates).
These rates remain static, unless the respective governmental boards vote to change them.
Next, let's define Abatement and Homestead Exclusion.
Abatement: The passage of Act 202 allows purchasers of new construction to abate or exclude county taxes for 2 years. But, the Pennsylvania Legislature made it so difficult and confusing that they almost dare one to apply. Well, it is worth the tax savings to take up their dare and to apply. The following provides the instructions on how to go about doing it.
Homestead Exclusion: In December 2003, the County Chief Executive and County Council approved a homestead exclusion amendment for each homestead property in 2004 and for future years. Under this amendment, the initial $15,000 in assessed value of each owner occupied residential property, and certain farmstead properties, within Allegheny County would be exempted from County real property taxation starting in the year 2004.
Assessed Property Value and How the Taxes are Calcuated.
The next factor in the equation, after determining the tax rates, and the one more difficult to determine, is the assessed property value. The actual assessment information is available on Allegheny Count web site, and the following provides some examples of how the taxes are calculated.
Example 1: Abatement and Homestead Exclusion.
Homestead: Yes Abatement: Yes 2006 County Assessed Value 2006 Full Market Value Total Land Value $0
Total Building Value $0
Total Market Value $0
Total Land Value $8,000
Total Building Value $142,600
Total Market Value $150,000
In this example, the home owner has applied and been granted both a new construction abatement and homestead exclusion. Therefore, Allegheny County Taxes are $0.0.
Total Assessed Value Building Abatement Assessment Homestead Exclusion Assessment
County Taxes Borough Taxes School Taxes Total Property Taxes
Example 2: Homestead Exclusion Only.
Homestead: Yes Abatement: No 2006 County Assessed Value 2006 Full Market Value Total Land Value $8,000
Total Building Value $127,600
Total Market Value $135,000
Total Land Value $8,000
Total Building Value $142,600
Total Market Value $150,000
In this example, the home owner has applied and been granted the homestead exclusion, but either did not apply, nor been granted or the 2 years abatement has expired.
Total Assessed Value Building Abatement Assessment Homestead Exclusion Assessment
County Taxes Borough Taxes School Taxes Total Property Taxes
Example 3: No Exclusion or Abatement.
Homestead: No Abatement: No 2006 County Assessed Value 2006 Full Market Value Total Land Value $8,000
Total Building Value $142,600 0
Total Market Value $150,000
Total Land Value $8,000
Total Building Value $142,600
Total Market Value $150,000
In this example, the home owner has not applied and been granted the homestead exclusion, and did not apply, nor been granted or the 2 years abatement has expired.
Total Assessed Value Building Abatement Assessment Homestead Exclusion Assessment
County Taxes Borough Taxes School Taxes Total Property Taxes
Property Improvements after 2002:
Any individual property improvements that were made after 2002, resulting in an increase in the property value, will carry that new increased assessment. Individual appeals made and won, will also retain the resulting assessment.
New Construction after 2002:
So what happens with assessments for homes that did not exist in 2002, but were constructed since then? How will these properties be assessed? New construction, after 2002, will be valued at the cost of the construction, not the sales price, not the market value, but cost of materials and labor dollars that went into the property. This is not the actual cost of costruction when builts, but the cost as if the house were built in the year of 2002. Individuals building their own homes must keep accurate records of these costs.
How is this 2002 valued cost actually determined? The Office of the Allegheny County Chief Executive has computer software with tables to determine the 2002 construction cost. This Office may be cotacted by phoning: (412) 350-6500, Fax: (412) 350-6512, or send to:
School District Appeals:
Property assessments that have been appealed by school districts, and increased, will be automatically again appealed by the County on behalf of the property owners. There are approximately 11,000 properties in this category. Each of these property owners will receive a letter with more explanation. Should you be in this category and do not receive a letter, you then must file your own appeal.
Filing an Appeal:
Please take special note that the 2008 tax year appeal filing deadline is March 31, 2008. If you are an owner of new construction, after 2002, and are not comfortable or confident that your assessment will be equal to the value of the construction cost, you must file an appeal, or you will be paying an excess amount of property taxes. If you are in doubt, it is better to file the appeal on time and then withdraw it at a later time should it not be necessary.
To file an appeal at this time, use this 2008 Appeal Form and 2008 Appeal Instructions, or you may obtain the same form from the Allegheny County Web site.
Reduce Your Property Taxes: If you haven't already, you should act promptly and apply for the Homestead Exclusion (Act 50) and the New Home Construction Abatement (Act 202)!
ACT 50 Homestead / Farmstead Property Tax Exclusion Instructions and Form
ACT 202 New Home Construction Property Tax Abatement for 2 YearsYou may need to download and install Adobe Reader to view some of the forms and Instructions: Download Adobe Reader to View and Print Forms
There are other Property tax abatements and exclusions that may or may not be applicable to your situation. This information is also available at the Allegheny County web site.
