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2/8/12 – Did Outsourcing Cause Allegheny County Assessment Chaos?

Noah Paul Fardo — Wed, 08 Feb 2012 15:53:27 +0000

This article will question whether outsourcing the 2012 Allegheny County property reassessments was the best idea for the residents of Allegheny County.

The Problem:

The Pittsburgh Post-Gazette recently questioned the fairness of the new 2012 Allegheny County property reassessments. The Post-Gazette review found that in Pittsburgh, expensive property values were underestimated as compared to lower-priced property values. This means more expensive properties were again, in theory, receiving a tax break.

The new report proves troubling since one of the primary justifications for the court-ordered reassessment was that lower-income properties were paying more than their fair share already. The problem is the mass appraisal system.

Mass appraising is not a perfect science. Instead, it creates a range where the success of the reassessment can meet industry standards for consistency and fairness, and still be unfair to certain areas and residents.

The results of the 2012 Allegheny County reassessment thus far are not unusual. National appraisal systems tend to produce similar results of favoring more expensive properties because mass appraising software can lead values to the ‘mean‘ value – (meaning lower-income values are raised and more expensive property values are decreased towards the center).

For the 2012 reassessment, Allegheny County utilized the services of a contractor named Cole Layer Trumble, a division of Dallas-based Tyler Technologies. The cost of the 2012 reassessment was an estimated 11 million dollars, but actual costs may ultimately be higher. In 2001, Allegheny County paid Sabre Systems, Inc. an estimated 30 million dollars for a similar service.

What I believe compounds the flaws of mass appraisal software is the decision by Allegheny County to hire non-residents of Allegheny County to complete the reassessment process.

The Solution:

Every time there is a reassessment in Allegheny County, there is chaos. With another reassessment allegedly scheduled for 2015, it is time that Allegheny County provides a strategy to handle future reassessments in a less chaotic fashion. Ideally, there should be greater accuracy so as not to discriminate against lower-income properties.

The solution is quite simple – start soon and keep it local.

1. Do not wait until the last minute.

If we are going to reassess every 3 years, we should start the next reassessment process soon. One of the major flaws with each of the last reassessments was that there was never adequate time to correct inequities found. Instead, the solution was always to fix the inequities through the appeal process. The appeal process though, cannot correct inequities of the appraisal software (favoring more expensive properties). We need more time and a thorough review prior to releasing any reassessments. The goal is to make any reassessments accurate, and that can only be accomplished by having enough time to perform multiple quality checks prior to release of the new assessments.

2. Keep it local.

Instead of outsourcing millions of dollars, Allegheny County should keep the reassessments local. Not only does it make more sense to spend the reassessment money locally, but it will produce a more accurate result. Allegheny County’s real estate market is too diverse to rely heavily on mass appraisal software.

Instead, the solution should include increased hiring of assessors, appraisers and real estate agents at the local level. Crtitics may argue that it would be cost prohibitive to have a reassessment division with local experts. I disagree. I believe it would be less costly to employ a full time reassessment division, with access to local experts, than it would be to incur a major capital expenditure every 3 years. This could only be done, however, if we allowed sufficient time to complete the next reassessment.

Conclusion:

Allegheny County needs a better reassessment plan for the future. Our elected officials should not wait for the state legislature to act (which they never will), nor should they place residents in a similar position in 3 years. Instead, we need a strategy implemented now, that will create an in-house reassessment division that will spend our taxpayer money locally and produce more accurate results than mass appraisal software.

If you have any questions about Allegheny County property assessments, please feel free to call attorneys Noah Paul Fardo or Nicole Hauptman for help at (412) 802.6666 or email us at info@pghfirm.com.

This article is written for entertainment purposes only. It should not be relied upon for legal advice, and in no way does this article create an attorney/client relationship. We only represent individual(s) once there is a signed representation and fee agreement in place. Please read full legal Disclaimer.

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2/8/12 – Allegheny County 2012 Reassessment Update.

Noah Paul Fardo — Mon, 06 Feb 2012 17:20:06 +0000

This article will update readers about the current status of the 2012 Allegheny County property reassessments as of February 8, 2012.

CITY OF PITTSBURGH & MOUNT OLIVER

If you own property in the City of Pittsburgh or Mount Oliver, you should have received your 2012 reassessment already in the mail. You may check new 2012 Allegheny County reassessment values at the Court Ordered Real Estate Website.

The informal deadlines is 2/15/12.
The formal appeal deadline is 4/2/12.

EAST OF THE CITY OF PITTSBURGH (MAILED 1/27/12)

(Braddock Borough, Braddock Hills Borough, Chalfont Borough, Churchill Borough, Clairton (Wards 1 and 2), Dravosburg, Duquesne (Wards 1-3), East McKeesport Borough, East Pittsburgh Borough, Edgewood Borough, Elizabeth Borough, Elizabeth Township, Forest Hills Borough, Forward Township, Glassport Borough, Liberty Borough, Lincoln Borough, McKeesport (Wards 1-12), Monroeville Borough, Mt. Oliver Borough, North Braddock Borough, North Versailles Borough, Oakmont Borough, Penn Hills Borough, Pitcairn Borough, Pittsburgh, Port Vue Borough, Plum Borough, Rankin Borough, South Versailles Township, Swissvale Borough, Trafford Borough, Turtle Creek Borough, Verona Borough, Versailles Borough, Wall Borough, White Oak Borough, Wilkins Township, Wilkinsburg Borough, Wilmerding Borough).

The informal deadline is 2/15/12.
The formal appeal deadline is 4/2/12.

WEST OF THE CITY OF PITTSBURGH (set to be mailed 2/20/12)

(Baldwin Borough, Baldwin Township, Bethel Park Borough, Brentwood Borough, Bridgeville Borough, Carnegie Borough, Castle Shannon Borough, Collier Township, Crafton Borough, Dormont Borough, Green Tree Borough, Heidelberg Borough, Homestead Borough, Jefferson Hills Borough, Mount Lebanon, Munhall Borough, Pleasant Hills Borough, Rosslyn Farms Borough, Scott Township, South Fayette Township, South Park Township, Upper St. Clair Township, West Elizabeth Borough, West Homestead Borough, West Mifflin Borough, Whitaker Borough, Whitehall Borough).

The informal deadline is not yet set as of 2/8/12.
The formal appeal deadline is not yet set as of 2/8/12.

NORTH OF THE CITY OF PITTSBURGH (set to be mailed on 3/2/12)

(Aleppo Township, Aspinwall Borough, Avalon Borough, Bell Acres Borough, Bellevue Borough, Ben Avon Heights Borough, Ben Avon Borough, Blawnox Borough, Brackenridge Borough, Bradford Woods Borough, Cheswick Borough, Coraopolis Borough, Crescent Township,East Deer Township, Edgeworth Borough, Emsworth Borough, Etna Borough, Fawn Township, Findlay Township, Franklin Park Borough, Frazer Township, Fox Chapel Borough, Glenfield Borough, Glen Osbourne Borough, Hampton Township, Harmar Township, Harrison Township, Haysville Borough, Indiana Township, Ingram Borough, Kennedy Township, Kilbuck Township, Leet Township, Leetsdale Borough, Marshall Township, McCandless Township, McDonald Borough, McKees Rocks Township, Millvale Borough, Moon Township, Neville Township, North Fayette Township, Oakdale Borough, O’Hara Township, Ohio Township, Pennsbury Village, Pine Township, Reserve Township, Richland Township, Robinson Township, Ross Township, Sewickley Borough, Sewickley Heights Borough, Sewickley Hills Borough, Shaler Township, Sharpsburg Borough, Springdale Borough, Springdale Township, Stowe Township, Tarentum Borough, Thornburg Borough, West Deer Township, West View Borough).

The informal deadline is not yet set as of 2/8/12.
The formal appeal deadline is not yet set as of 2/8/12.

What Else You Need to Know:

1. All property owners should be aware that the deadline to appeal this year’s value (2011 value) is also April 2, 2012. There is no informal appeals process if you are appealing the 2011 value only.

2. If you wish to appeal both the current value (2011 value) and the new value (2013 value), you must file 2 separate property tax appeal forms.

3. If you have a pending tax appeal for 2012 or earlier, at any level, and wish to also appeal the new 2013 value, you must file a separate property tax appeal form.

4. Commercial property owners who own property assessed in excess of 1 million dollars may by pass the administrative level at the Office of Property Assessment and request that their case be immediately transferred to the County Board of Viewers. There may be advantages and disadvantages of filing this request.

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Assessment Deadline for City Extended until 4/2/12 – Others Waiting.

Noah Paul Fardo — Wed, 25 Jan 2012 02:40:54 +0000

Allegheny County Assessment Update: 1/24/12

Allegheny County has announced that the property tax assessment formal appeal deadline for the City of Pittsburgh and Mount Oliver has been extended from February 24, 2012 until April 2, 2012. The informal deadline has been changed to February 15, 2012.

Property owners in the City of Pittsburgh and Mt. Oliver can expect to receive a third notice from Allegheny County shortly, explaining their new 2012 property reassessments. It is important to understand that the implementation of these new 2012 values will not take place until 2013. However, property owners will be given a limited opportunity this year to challenge these reassessment values prior to receiving 2013 property tax bills.

The Office of Property Assessments has stated that they intend to give scheduling priority to hearings that concern property owners with assessments that were increased by more than 45 percent.

Allegheny County property owners within the suburbs of Pittsburgh can expect to receive notices of their reassessment values soon. The notices for the eastern suburbs are scheduled to be mailed on January 27, 2012. The notices for the southern suburbs of Pittsburgh are scheduled to be mailed on February 20, 2012. The notices for the northern suburbs of Pittsburgh are scheduled to be mailed on March 2, 2012. Information about the appeal deadlines for property owners in the suburbs should be contained in the information sent by the County.

For now, residents need to make sure that they receive their new notice from the Allegheny County in accordance with the above schedule.

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Allegheny County New Assessment Website is a NIGHTMARE for Taxpayers (1/23/12).

Noah Paul Fardo — Mon, 23 Jan 2012 22:12:33 +0000

Allegheny County’s new website for the release of the 2012 Allegheny County property reassessment values will prove frustrating and more difficult for property owners.

Instead of simply adding the new 2012 values on the existing Allegheny County real estate website, (like the County did three weeks ago), Allegheny County Executive Rich Fitzgerald chose to create a new website called “Court Ordered Reassessment Values“.

The new “Court Ordered Reassessment Values” website is a nightmare for residents because it will make research much harder and require review of multiple websites instead of just one.

Here are 5 reasons why this new website actually makes it more difficult for property owners.

PROBLEM #5:

You cannot find the new website.

The problem is that there is no direct link from the old search page to the new search page. So you are forced to find the property assessment home page and start from there. From there, this will still prove difficult for some residents to find the new website.

Solution: A direct link needs to be added from the original real estate website search page to the new website search page.

PROBLEM #4:

The new site does not list the current assessments of the subject property or the comparables.

Property owners should be allowed to compare the increase in assessments for both their properties and their neighbors’ properties. By having 2 different webpages, the County has deliberately made it more difficult and time consuming to research your own assessment or that of your neighbors.

Solution: Allow property owners to view assessments (both current and new 2012 values).

PROBLEM #3:

There are no Maps.

The County deleted the map function in its entirety from the new site. The map can be important in locating comparable properties and streets to fight your assessment.

Solution: Allow the property owners to view the maps.

PROBLEM #2:

The Sales History of the subject property is gone.

The sales history of properties is relevant and necessary in reviewing property assessments. It makes no sense that the County removed them.

Solution: Allow the property owners to view the sales history.

PROBLEM #1:

The new site does not show SALE PRICES of the comparables, once you leave the comparable sales page.

This makes the new site almost impossible to use as an effective research tool. The new site has a link for a comparable sales page for properties, but if you click on any of those comparables, you no longer can view the sales price. The sales prices of comparables is the most important evidence for fighting unfair property assessments.

Solution: Add the 2012 reassessment values to the original real estate website, like they were three weeks ago, so all of the information can be seen on a single screen.

CONCLUSION:

I believe Executive Fitzgerald does care about the taxpayers, but this new website is awful.

Allegheny County needs to add the new 2012 values to their original website so that taxpayers can see all of the assessments, maps, sales history and sale prices without having to view multiple computer screens. To keep the current format will only further harm the residents of Allegheny County.

If you have questions about Allegheny County property assessments, please feel free to call Attorney Noah Paul Fardo at 412.802.6666.

VIDEO: (1/13/12) Allegheny County Reassessment Update: “Appeal Now (2012):Pay Later (2013)”

Noah Paul Fardo — Fri, 13 Jan 2012 14:08:52 +0000

2012 Allegheny County Property Reassessment Update 1/13/12:

Basically, we will be using 2002 values for 2012, and new 2012 values for 2013; with the opportunity to appeal this year before the new tax bills are due next year.

As of January 13, 2012, the 2012 Allegheny County property reassessments are back on with a new deadline of February 24, 2012, for all properties within the City of Pittsburgh and Pittsburgh Public Schools (which also includes portions of Mount Oliver).

However, the Honorable R. Stanton Wettick also agreed to delay the implementation of the actual tax bills utilizing the new 2012 values until 2013. This means that the 2012 reassessments will go through in 2012, but will not be used by the taxing entities for tax billing purposes until 2013.

If you own commerical or residential property in the City of Pittsburgh or Mount Oliver, and believe your new 2012 reassessment is too high, you are encouraged to appeal in 2012 (by 2/24/12) prior to the 2013 tax bills being sent by the taxing entities.

This announcement does not effect the surrounding municipalities and boroughs within Allegheny County. All other boroughs and municipalities are expected to receive new 2012 reassessments by the end of February 2012, and new 2012 appeal deadlines thereafter.

Allegheny County has not yet determined whether or not they will re-implement the “informal” hearing process as time is no longer of the essence for the appeals process. We will attempt to keep our clients and readers updated.

Here is the language from Judge Wettick’s Order of Court dated 1/12/12.

Judge Wettick: Order of Court 1/12/12

1. For the Pittsburgh School District and the City of Pittsburgh, the 2011 assessments shall be used for 2012 and the 2012 assessments shall be used for 2013.

2. Appeals of the 2012 assessments for use in 2013 for properties within the Pittsburgh School District and the City of Pittsburgh shall be filed by February 24, 2012 (emphasis added).

3. Appeals shall be heard by the Board of Assessment Appeals and Review beginning no later than February 1, 2012. Priorities shall be given to appeals of the 2012 reassessment of properties within the Pittsburgh School District because millage rates for the Pittsburgh School District and the City of Pittsburgh is set in January and tax bills are issued in the same month.

4. By Tuesday, January 17, 2012, at 2:00 P.M., Allegheny County shall furnish to this member of the court and to counsel of record a proposed notice that will be mailed to the owner of properties in the City of Pittsburgh, the Borough of Mount Oliver, and the Pittsburgh School District.

If you have questions about Allegheny County property assessments, please feel free to call us for help (412) 802.6666 or email us at info@pghfirm.com.

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1/10/12 – Judge Overrules Fitzgerald – Orders 2012 Assessments to Continue

Noah Paul Fardo — Tue, 10 Jan 2012 21:50:47 +0000

The Honorable R. Stanton Wettick ordered today (1/10/12) that the 2012 reassessments in Allegheny County must continue pursuant to his previous Orders of Court. Over the last week, County Executive Rich Fitzgerald declared the 2012 reassessments, “null and void.” However, today’s Order specifically directed the Allegheny County Office of Property Assessment, County Manager, and County Chief Assessor to continue with the 2012 reassessments or be held personally in contempt of court, even if County Executive Fitzgerald directs them otherwise.

Judge Wettick left open the possibility that the actual payments of the new tax bills could be deferred until 2013 (a decision he stated he will render on Thursday, January 12, 2012). The City of Pittsburgh School District has a pending motion asking for a 1 year delay in implementation of the 2012 assessment numbers so as to provide time for the actual appeals process.

What does it Mean?

For now, the 2012 assessment deadline for the City of Pittsburgh is still February 10, 2012. All commercial and residential property owners in the City of Pittsburgh who believe their new 2012 assessments are too high, should file formal appeals with the Allegheny County Office of Property Assessment by February 10, 2012.

We will continue to keep our clients updated concerning the Allegheny County Assessment chaos.

If you have questions about Allegheny County property assessments, please feel free to call us for help (412) 802.6666 or email us at info@pghfirm.com.

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“Scent of a Fitzgerald” : Allegheny County Assessments (1-6-12)

Noah Paul Fardo — Fri, 06 Jan 2012 21:52:29 +0000

In Scent of a Woman with Al Pacino, a young student was faced with the difficult decision of following the laws of his school by informing on classmates or following his own honor and not ‘ratting’ on his friends.

Allegheny County Executive Rich Fittzgerald is in a similiar position. On one hand, the Pennsylvania Supreme Court has ruled that the 2002 base year system is unconstitutional and a court order is in place mandating the 2012 Allegheny County property reassessments. On the other hand, Fitzgerald has strong personal convictions where he has refused to abide by the court orders and has stated publicy that he is prepared to go to jail.

I would not want to be in his position. However, the sole question should be: What is best for Allegheny County residents?

I am not in favor of the 2012 reassessments, unless they give property owners the chance to appeal before the property taxes are actually due. However, arguments could be made that Fitzgerald’s actions are not in the best interest of Allegheny County residents.

You need to remember why the reassessment was ordered. It was ordered primarily because lower income properties were being taxed higher than they should be. Also, many affluent properties were underassessed and thereby increasing the millage rate to others. It was because of these inequities that the courts ruled that the 2002 base year system violated the Pennsylvania Constitution.

I do not know whether we can compare the Pennsylvania Supreme Court to the “Baird School”, or whether Fitzgerald “is still worthy of calling himself a Baird Man”, but as a taxpayer of Allegheny County, I respect Fitzgerald for standing up for what he truly believes.

On the other hand, I think it is wrong for the top official in Allegheny County to say that he does not have to follow the law.

Regardless of your position, it is not in the best interest of Allegheny County residents to experience this type of chaos (AGAIN), or spend millions and millions of taxpayer money without a clearer plan. This has to be one of the greatest debacles and stand-offs in the history of Allegheny County, and I for one am enjoying the show.

I just hope if Rich Fitzgerald wins, he yells: ”whoo ah!”.

If you have questions about Allegheny County property assessments, please feel free to call us for help (412) 802.6666 or email us at info@pghfirm.com.

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1/5/12 ALERT: County Stops Informal Hearings. Could Delay Implementation Until 2013.

Noah Paul Fardo — Thu, 05 Jan 2012 20:52:14 +0000

1/5/12: Urgent Allegheny County Assessment News:

On January 5, 2012, Allegheny County executive Rich Fitzgerald abruptly stopped all informal tax appeal hearings in Allegheny County.

Previously, the informal appeal deadline date was set for January 13, 2012, for all residential and commercial properties in the City of Pittsburgh and Mount Oliver. Judge Wettick who is overseeing the 2012 reassessment has indicated a willingness to allow 2012 appeals to proceed, but not to be implemented for tax purposes until 2013. Judge Wettick has scheduled another status conference for Tuesday, January 10, 2012 at 2pm. We will keep our clients updated.

The Current Status as of 1/5/12:

It appears that 2012 assessments will continue under a 2002 base year. However, property owners will need to be aware that they may still need to file property tax appeals in 2012 to fight the potential 2013 assessment. Property owners in the City of Pittsburgh and Mount Oliver may now ignore the INFORMAL appeal deadline, but NOT the formal appeal deadline of February 10, 2012, which is still valid as of 1/5/12. Again, we will keep our clients updated with regards to the continuing chaos concerning Allegheny County property assessments.

If you have questions about Allegheny County property assessments, please feel free to call us for help (412) 802.6666 or email us at info@pghfirm.com.

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VIDEO: What is the difference between an ‘Informal Hearing’ vs. a ‘Formal Appeal Hearing’?

Noah Paul Fardo — Thu, 05 Jan 2012 14:19:26 +0000

The 2012 assessments have been released by Allegheny County, Pennsylvania for the City of Pittsburgh and Mount Oliver only.

The formal dealing for filing an appeal is April 2, 2012.

Our clients want to know the difference between the informal appeals process and the formal appeals process.

The 2 main differences are 1) the length of the hearings (i.e. the informal hearings are expedited) and 2) the attorneys for the taxing entities will not be present at the informal hearings.

The lack of any cross-examination by the taxing entities can be a significant advantage for property owners who are adequately prepared. In short, it means your evidence, if credible, should win the appeal, since there will be no attorneys to refute it. Remember to focus on comparable sales, not comparable assessments. Arguments should be brief, concise, and correct inaccurate data.

Originally, the concept of the informal hearing was to help correct inaccurate building characteristics on the property record (such as # of rooms or square footage). Since the last reassessment, the informal hearing has acted as the same function as the formal hearing (i.e. an opportunity for the property owner to reduce their property assessment value). If a property owner believes they have a valid case for an appeal, they should proceed with the informal appeals process first.

Another advantage of the informal appeal process is the fact that the result from the informal appeal will be the property owner’s tax base pending any additional appeals by the taxing entities (which can sometimes last for years).

Property owners should also be aware that anytime a property owner files an assessment appeal in Allegheny County, PA, the assessment can be lowered, sustained (kept the same) or raised. If you are a recent home-buyer and your new 2012 assessment is lower than your recent purchase price, you need to be careful not to appeal and have your assessment raised.

If you have questions about Allegheny County property assessments, please feel free to call us for help (412) 802.6666 or email us at info@pghfirm.com.

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VIDEO: Pittsburgh Deadline to Appeal Assessments: February 10, 2012.

Noah Paul Fardo — Fri, 30 Dec 2011 01:09:19 +0000

CITY OF PITTSBURGH /MOUNT OLIVER

Informal Appeal Deadline: 1/13/12
Formal Appeal Deadline: 2/10/12

On December 27, 2011, Allegheny County has mailed new 2012 property assessments to all residential properties within the City of Pittsburgh and Mount Oliver. Commercial assessments are set to be released on December 31, 2011.

Property Owners within the City of Pittsburgh and Mount Oliver (only) need to be aware of 2 important deadlines for filing 2012 Allegheny County property assessment appeals.

The deadline for filing informal appeals is January 13, 2012. The deadline for filing a formal appeal is February 10, 2012. Informal appeals have typically been only to address error corrections on properties and not to challenge the actual assessment figure. It is currently unknown whether the informal appeals process will allow arguments to change the assessment if there are no error corrections. Our sources at Allegheny County are providing contradictory responses.

Most important for City of Pittsburgh and Mount Oliver residents is to NOT miss the February 10, 2012 formal deadline.

These deadlines ONLY affect the City of Pittsburgh and Mount Oliver properties. Properties in the remaining municipalities and boroughs will receive separate assessment notices with separate appeal deadlines not yet released.

Any property owners in the City of Pittsburgh or Mount Oliver who have questions about their new 2012 Court Ordered Assessment are encouraged to contact us for a free consultation online at info@pghfirm.com or call us at 412.802.6666. We are asking to see a copy of the actual notice you received from the County (both sides).

One unique change in the appeals process so far is the presence of a control number which is on the notice of the new assessments. This control number is important in filing the appeals.

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