Assessment X Millage Rate = Taxes
So my wife and I decided to find out what could be done. The Berks County website offered this helpful piece of knowledge...duh. The trick here is to understand that Assessment does not equal appraisal. Once that is clear then you can ferret through the rest of the website(s) to figure out how to get a different assessment.
Step 1: get a new appraisal. The burden of proof is on the home owner. We got a card in the mail from an agent/appraiser suggesting that our house might have lost enough value (ouch) to make the reassessment process worthwhile. So after a lot of discussion we decided to spend the money to hire him for the work. This is the same thing you go through when selling a house, that is, doing the market research, getting comparables, etc. In a declining market this is a bit tricky as there are not many houses to choose from. He did the homework and found we had lost about 16% since purchasing the house just two years ago.
Step 2: Fill out the paperwork. My wife went on the Internet, found the proper appeal form, and with the help of the appraiser filled out all of the questions. That had to be in by mid-August so we took the drive to the Reading Courthouse to hand deliver it. Turns out a few of our neighbors had the same idea, as the desk was overflowing with forms when she dropped ours off. A few days later we got a letter stating our court date was September 25th.
Step 3: Go to Court. Another drive into Reading. We found our way through the maze of corridors back to the assessors office and waited about thirty minutes for our 2:00 PM appointment. A few minutes before the hour they called our name, invited us into the office and offered us a seat. She handed the three administrators our package of paperwork and the #1 of 3 looked it over. #3 of 3 asked if we had any questions. (Nope) #2 of three said we should hear back by the end of October. We were out of the office by 2:00 PM.
So, what's next?
Step 1: get a new appraisal. The burden of proof is on the home owner. We got a card in the mail from an agent/appraiser suggesting that our house might have lost enough value (ouch) to make the reassessment process worthwhile. So after a lot of discussion we decided to spend the money to hire him for the work. This is the same thing you go through when selling a house, that is, doing the market research, getting comparables, etc. In a declining market this is a bit tricky as there are not many houses to choose from. He did the homework and found we had lost about 16% since purchasing the house just two years ago.
Step 2: Fill out the paperwork. My wife went on the Internet, found the proper appeal form, and with the help of the appraiser filled out all of the questions. That had to be in by mid-August so we took the drive to the Reading Courthouse to hand deliver it. Turns out a few of our neighbors had the same idea, as the desk was overflowing with forms when she dropped ours off. A few days later we got a letter stating our court date was September 25th.
Step 3: Go to Court. Another drive into Reading. We found our way through the maze of corridors back to the assessors office and waited about thirty minutes for our 2:00 PM appointment. A few minutes before the hour they called our name, invited us into the office and offered us a seat. She handed the three administrators our package of paperwork and the #1 of 3 looked it over. #3 of 3 asked if we had any questions. (Nope) #2 of three said we should hear back by the end of October. We were out of the office by 2:00 PM.
So, what's next?
Current Market Value X Common Level Ratio = Assessment
The Current Market Value is the work we did to get the house reappraised. The Common Level Ratio is a multiplier (fudge factor) the county uses as an incentive to get people to move to Berks County. It varies from year to year, but currently is set at 67.7%
The Assessment is then multiplied by millage rates for the County (.006935), Local (.0017) and School (.02002) to calculate our annual taxes.
So what? Well, it looks like this little exercise should save us about $1,000/year in property taxes starting next year (no refunds for this year). The way the assessment process works(?) in Pennsylvania is that the county won't reassess unless a major event ( building permit, sale of the house, etc) occurs, OR they think it is time. (Like a rapid rise in housing prices.) I think ours will stay pretty stable for some time to come.
**(PSU lost to the Hawkeys, again)
The Assessment is then multiplied by millage rates for the County (.006935), Local (.0017) and School (.02002) to calculate our annual taxes.
So what? Well, it looks like this little exercise should save us about $1,000/year in property taxes starting next year (no refunds for this year). The way the assessment process works(?) in Pennsylvania is that the county won't reassess unless a major event ( building permit, sale of the house, etc) occurs, OR they think it is time. (Like a rapid rise in housing prices.) I think ours will stay pretty stable for some time to come.
**(PSU lost to the Hawkeys, again)
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