FAQs
What is the Adams County county-wide property tax reassessment?
- By Pennsylvania law, a county cannot reassess any property unless it reassesses all properties in the entire county based on their current fair market value. Adams County has decided to redetermine the fair market values of each of its properties in the county, effective January 1, 2010, with the assessed values becoming effective January 1, 2011.
- Why is Adams County reassessing properties now?
- The last Adams County county-wide reassessment was done in 1990. Since that time, the economic landscape has changed drastically. Some properties have appreciated in value much more than others, yet many of those properties are paying the same amount of tax. Thus some property owners are paying much more in taxes than they should while others are paying much less than they should. As a result of the county-wide reassessment, all properties in Adams County should be assessed on their current fair market value and thus everyone will be paying their fair share of property taxes.
- What is “fair market value?”
- “Fair market value” is generally understood to be the price that a willing, but not obligated, seller would sell the property to a willing, but not obligated, buyer. While seemingly hundreds of court cases further explain the concept, a short-handed expression might be: What do you think your property would sell for on the open market?
- How did Adams County determine my property’s fair market value?
- All real estate is unique and should be valued accordingly; however, in most cases, Adams County probably reviewed property sales in your area and compared those sales to your property to determine how much your property would sell for on the open market. For commercial or industrial property, the County may have used rental rates to calculate the fair market value.
- How much will my property taxes be?
- The tax rates have not been established by the county, municipalities or school districts, but a general rule of thumb is to take the assessed fair market value of the property and multiply it by 0.025. Thus, a property assessed at $100,000 can estimate a total property tax liability of about $2,500.
- When will Reassessment Notices be mailed?
- According to Adams County’s website, reassessment notices will be mailed on or before July 1, 2010.
- What can I do if I think my property is improperly assessed at too high a value?
- You can file an appeal with the Adams County Board of Assessment Appeals (“Board”) within 30 days from the mailing date of your assessment notice at which time you must present testimony establishing the correct fair market value of your property.
Once an appeal is filed, the Board should schedule a hearing as early as 30 days after mailing the notice and no later than October 31, 2010. By law the Board must act on all appeals no later than October 31, 2010.
Along with the formal appeal process, a taxpayer may choose to participate in an informal review process that will involve attending a meeting with one of the assessors that participated in the reassessment. During the informal meeting, the taxpayer should have an opportunity to advise the assessor of any conditions that exist on the property which would have a negative effect on the property value. The assessor has the ability to recommend a change with the approval of a Certified Pennsylvania Evaluator. This informal process should not replace the formal appeal process. Consequently, if a taxpayer does not file an appeal within 30 days of the mailing of the notice of assessment, the taxpayer is foreclosed from doing so if he or she does not agree with the outcome of the informal appeal process.
In preparation of a hearing before the Board, those owners of commercial or industrial properties should consider obtaining an independent appraisal of the real property.
After hearing the appeal, the Board may raise, lower or sustain the new assessment. If the taxpayer does not agree with the Board’s decision, then the taxpayer may file an appeal within 30 days of the Board’s decision mailing date with the Adams County Court of Common Pleas. However, the taxpayer must pay all taxes levied on the reassessed value while the appeal is pending. If the reassessed value is later lowered by agreement or court order, the taxpayer will be entitled to a refund of the excess taxes paid.
- Is there a filing fee to appeal the initial notice of a new assessment value pursuant to a county-wide reassessment?
- There are no filing fees for filing an appeal of a the initial notice of a new assessment value pursuant to a county-wide reassessment.
- Should I file the appeal myself or should I hire an attorney?
- If you are an individual or an individual within a partnership, you may file the appeal yourself. If you are a corporation, LLC or other company, you probably are required by law to hire an attorney to file the appeals and represent your company at the hearing(s) based on recent Commonwealth Court decisions. Property tax assessment appeals, especially for commercial or industrial properties can often result in substantial valuation adjustments. The assistance of experienced counsel may be critical in the effective pursuit of negotiations or appeals. Attorneys who practice in the property tax area can assist taxpayers in retaining and working with appraisers and can ensure that all appropriate tax exemptions and exclusions are claimed in the appeal. Please note that a property assessment can increase or decrease as a result of an appeal and thus taxpayers should proceed with an appeal only where the taxpayer has a good faith and reasonable basis for seeking a reduction in the property’s fair market value. The attorneys at Gothie Van Allen LLC have handled over 12,000 Pennsylvania property tax assessment appeals saving taxpayers nearly $90,000,000 of taxes. While each case is different and no results can be promised, we think that every Adams County property holder whose tax assessment exceeds $500,000 should consult with us to see if they should file an appeal. For more information, please visit Adams County Property Taxes and You or our website, www.gvafirm.com.
- Can I hire an appraiser to handle the appeal for me?
- No. The courts have held that an appraiser may not file appeals for taxpayers or represent them in the appeal process. However, it may very well make sense to hire an appraiser to present expert testimony at the hearing(s).
- I own a commercial property. Are commercial properties assessed the same way as residential properties?
- Commercial properties, like residential properties, are assessed based on their fair market value, but, unlike residential properties, commercial properties have a number of legal issues regarding the computational methods for determining fair market value. Commercial properties therefore present far more complex issues and thus tax savings opportunities.
- We're a 501(c)(3) non-profit corporation. Shouldn’t we be exempt from property taxes?
- Maybe. Pennsylvania grants a property tax exemption to certain lands owned and used by “purely public charities” which is a much higher standard than merely being a non-profit company. In order for an entity to qualify as purely public charity, it must: 1) advance a charitable purpose; 2) operate entirely free of a private profit motive; 3) donate or render gratuitously a substantial amount of its services; 4) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; and 5) relieve the government of some of its burden.
- How can I learn more about my own specific property taxes?
- Please visit Adams County Property Taxes and You for more information about your particular situation.