Why is assessed value higher than market value?
If the assessed value is higher than the fair market value, the property has most likely been overassessed by the town, and the owner is probably paying too much in taxes.
How are assessed values determined?
To arrive at the assessed value, an assessor first estimates the market value of your property by using one or a combination of three methods: performing a sales evaluation, the cost method, the income method. The market value is then multiplied by an assessment rate to arrive at the assessed value.
How are property taxes assessed in Pennsylvania?
Property taxes are administered at the county level in Pennsylvania. In every county, the sum of local tax rates (school taxes, municipal taxes and county taxes) is applied to the assessed value of each property. In other counties, assessed value is equal to some percentage of current market value.
How is the assessed value of a property determined in PA?
Only during the base year does the assessed value of a property typically equal the fair market value. The common-level ratio for each county is determined and published each year in mid-summer (effective the following tax year) by the Pennsylvania State Tax Equalization Board (S.T.E.B.).
What is assessed value and why is it important?
Assessed value is used mostly for property tax purposes. Home buyers and sellers, on the other hand, look more to market value instead. However, assessed value can come up when you buy or sell a home because this number, unlike the loosey-goosey market value, is public knowledge contained in property records.
What is the established pre determined ratio in PA?
The ratio can be set up to 100 percent and is further defined, in Pennsylvania law, “Established Pre-Determined Ratio shall mean the ratio of assessed value to market value established and uniformly applied in determining assessed value in any year.” When are the market values certified?
Does assessed value come up when you buy or sell a home?
Home buyers and sellers, on the other hand, look more to marketplace value than at property tax data. However, assessed value can come up when you buy or sell a home, because this number, unlike the loosey-goosey market value, is public knowledge contained in property records.