The 2012 Assessments are coming.
We keep you updated.
Property owners defending school appeals need to know the disadvantage of representing themselves in Allegheny County Assessment appeals.
5/10/10
Property Owners should understand the basics in defending Allegheny County Assessment appeals.
Allegheny County has again been sued concerning the Allegheny County assessment system. This time a group of homeowners has filed suit against Allegheny County, the city of Pittsburgh, its public schools and the Woodland Hills School District. Basically, the suit is seeking a refund of certain property taxes paid since 2006.
The suit is based upon the fact that since the Pennsylvania Supreme Court ruled last year that the 2002 base year is unconstitutional, that there should be a class action allowing for refunds to some 50,000 property owners. The plaintiffs are first seeking class action status, and then want to seek the property tax refunds. My opinion is that the plaintiffs are right, however, for the reasons that follow, the property taxes will never be refunded.
For history purposes, the reason the Pennsylvania Supreme Court ruled that there was a lack of uniformity in Allegheny County was because the current system is unfair to property owners with declining values.
For example, if a home sold in 2002 for $100,000 and then depreciated and sold again in 2008, for $50,000; should that property owner be forced to pay taxes on a value of $100,000 (the 02 value), even though it sold for half that amount six years later? Of course, not. This is one of the reasons why the 2002 base year was declared unconstitutional. The law does not allow the system to discriminate against certain property owners.
The plaintiffs in the new February 2010 lawsuit are arguing that since the Allegheny County system was declared illegal, that certain property owners have been overpaying in taxes, and thus are entitled to property tax refunds.
I wholeheartedly agree from a practical and moral perspective. If residents are paying more than their fair share of property taxes because the county used an illegal system, common sense would tell you that they deserve either tax credits or refunds.
From a legal perspective, what the property owners are asking for is a legal impossibility
First, without an alternative system in place to assess what the correct amount of taxes should have been, it will be systematically impossible to calculate refunds per property owner. Everybody was paying under the same illegal system.
Second, if you issue refunds to certain property owners, you would be then be discriminating against the property owners not receiving refunds.
Third, the school districts and taxing entities have already set their millage rates and paid their expenses for 2006, 2007, 2008, and 2009. If the school districts and taxing entities were ordered to issue vast refunds, not in their current budgets, almost all property owners would realize enormous tax increases in new millage rates being set for 2011. Point being, they would need to raise this revenue somewhere.
Fourth and perhaps most important, I am not aware of any liability on the taxing bodies for the wrongdoings of the assessing body. In essence, you would be punishing the school districts and taxing entities to issue refunds, since the County screwed up the assessments. The taxing bodies just used what Allegheny County told them to.
For these reasons, I applaud the lawsuit, however, highly doubt that one single resident will ever see an issued refund from the new lawsuit. I think the lawsuit was based more on principle than on an expectation of actually receiving refunds or money.
2010 is ripe for appeals.
(Why you may suffer if you don't appeal)
The deadline to file a
2010 Allegheny assessment appeal is March 31, 2010. People really haven't spoken too much lately about filing new
property tax appeals. But this year (2010) is ripe and may be necessary to appeal.
Here's why:
1. The Allegheny County Assessment system is a wreck! Almost every case could be a case. The reason is because the county is using two different opposite systems to decide the appeals, ... and the owner can pick. Follow me here:
Option #1: You want to use the 2002 base year value.
Home sold 2002: $300,000
2010 Assessment: $400,000
Home also sold 2009: $400,000
Expected Result: $300,000 (what you paid in 2002) (base year value)
You can file a 2010 appeal using the 2002 base year value to say your home was only worth $300,000 in 2002 and thus your property taxes would be reduced. You should file a 2010 appeal if your property was worth less in 2002 than your current assessment.
OR
Option #2: You want to use the 2010 base year value.
Home sold 2002: $400,000
2010 Assessment: $400,000
Home also sold 2009: $300,000
Expected result: $300,000
You can file a 2010 appeal using the 2010 base year value to say their home is only worth $300,000 now, since this is the price you paid in 2010. You should file a 2010 appeal if your property is worth less now in 2010 than your current assessment.
Do you understand how ridiculous this is? How can two neighbors argue their appeal at the same time and be allowed to use two different standards (2002 or 2010, whichever is better for them?)
The system is ripe for appeals, because you can pick the best system to get a reduction.
2. THE REASSESSMENTS ARE COMING!
The second reason you may want to consider filing a 2010 appeal is because the 2012 reassessments are coming. This is going to mean significant property tax increases for many properties in Allegheny County.
In 2005, when the county was looking at releasing the proposed previous assessments, areas like Sewickley, Edgeworth, Mt. Lebanon, Fox Chapel, Sewickley Heights, and Upper St. Clair were looking at increases in their assessments of 35% to 45%. That is enormous. That's an additional $4500 tax bill for a home assessed at $300,000.
If you can reduce your property taxes now, either using the base year system or the current system, and if you are then raised substantially in the 2012 reassessment, then I believe a favorable reduction now may be used as an additional basis for appeal later.
By not filing an appeal in 2010, property owners could lost the ability to make this argument.
It costs nothing to appeal. We review all cases for free. We often take cases on a strict contingency and only are paid after we receive the tax refund checks. There is no reason not to allow us to review your case.
The Post Gazette reported today that city council will extend the 2% property discount discount period for Pittsburgh city residents from Wednesday until later in the month. If you live in the city of Pittsburgh, you can still receive a 2% discount on your city and school property taxes by paying before the end of February 2010.
The discount period for Allegheny County is March 31, 2010 (the same day as the 2010 tax appeal deadline).
2/9/10
This morning, Noah Fardo was interviewed by KQV radio legendary announcer, PJ Maloney, who insisted on knowing whether he should respond to Allegheny County's most recent questionnaire asking property owners for information. (Audio Transcript coming).
Again, Noah Fardo insisted the response is OPTIONAL.
It is not mandatory, and we still believe the risks outweigh the rewards in responding to the county. (
SEE COUNTY GUIDELINES)
Th county has stated in writing that if you respond with written characteristic changes, an assessor will visit your property. In essence, you will be inviting strangers into your home to possibly raise your property taxes. KDKA Radio has has also reported that county assessors will be visiting every property, whose property owner does not respond.
So, in essence, the only properties that the county assessors will not be visiting will be those properties that return the questionnaire AND state that all of the information is correct. If that's the case, then Allegheny County just wasted approximately $300,000.00.
Every case is unique, but absent extreme circumstances, (i,e. material errors against you, we still believe the risks outweigh the reward of responding or letting county assessors into your home. If you have specific questions, call
Noah Paul Fardo, Esq. or
Shawn T. Flaherty, Esq. at 412.802.6666.
2/8/10
The county has published on-line a "
2010 Data Mailer FAQs" answering some of the property owners most asked questions:
Q: Do I have to mail the form back?
Q: Will my taxes go up?
Q: When is the reassessment?
Read closely the County's Answers. The county acknowledges that the responses are voluntary and not mandatory. It can be a difficult decision. Some clients have called and asked whether they are safer to send the form back as correct, hoping that assessors will not visit their property. I don't think the county really has the money or resources to send assessors to 600,000 properties. I think the county will send assessors only to major or square footage changes.
You need to be very careful about sending the information to the county, because their form states that if there is a discrepancy in the data, that they then will send assessors to your verify the data reported. Meaning inspections of the property.
So in essence, by being honest and returning their form, you could be inviting assessors to your property and inside your home, possibly to raise your property taxes.
It would be a very interesting legal battle to see the following:
What if a property owner returned the data sheet indicating that their square footage was actually 50% less than what the county records showed? What if the county then sent a county assessor to visit the property and verify the discrepancy? What if the homeowner did not allow the assessor inside their home and the county sued for access?
If the county attempts to force an assessor into your home, we will represent you for free. Absolutely no charges. I strongly believe that Allegheny County, Pennsylvania does not have the constitutional right to force entry into a private residence with the possibility of raising property taxes. That is a fight worth fighting.
We Still Have Constitutional Rights ...
... even in Allegheny County.
Thousands of Allegheny County property owners are receiving property questionnaires from the Allegheny County Office of Property Assessment. Allegheny County wants to know if your property characteristics are correct (i.e # of rooms?, square footage?, improvements? etc.) Our clients are asking us if they should answer the county?
Common sense should tell property owners that if they respond with information that improves the characteristics of their property, then their property taxes may very well increase.
Today, on February 4, 2010, KDKA Radio had a news segment telling people that if they do not respond within 10 days to the County questionnaires, then Allegheny County will be sending assessors to visit and inspect just those certain properties that did not respond.
It's not bad enough that the Supreme Court of Pennsylvania has already determined that the entire Allegheny County base year system is unconstitutional, now Allegheny County wants property owners to help the county raise their own property taxes and visit just some of the properties (which I think is also unconstitutional).
The bottom line is county assessors are not allowed to trespass on private property. If you see a trespasser you are allowed to call the police. Do not allow anyone allow into your home without a legal warrant or your unconditional consent. We still have constitutional rights, even in Allegheny County.
Clients have asked me, what about if I don't answer and they can see my house from the road? I think there is greater risk in responding than in cooperating in general. There may be exceptions, and please fell free to call me if you have questions (412.802.6666).
2/4/10
Firm News:
1/31/10
FLAHERTY FARDO Launches New Website:
The personal injury and trial lawyers of FLAHERTY FARDO, LLC are proud to launch their updated website as of January 31, 2010.
Our Pittsburgh law firm first launched a website in late 1999, when lawyers were first developing websites and starting to market on-line. The original website contained the Monday Night Football theme as we capitalized on former partner Dwayne Woodruff's career as a Super Bowl Champion with the Pittsburgh Steelers. The music didn't stay for long, and we don't know if we have ever heard music on a law firm website before. I wish had a copy of that site now.
Since 1999, a lot has changed with legal websites. This is our 4th version of a website and our intention moving forward is to educate the public and our clients on key areas of the law. Additional blogs will be pivotal to that education. Legal Websites continue to change drastically. We are currently updating on-line videos which are expected to launch this spring. As always, we thank those who visit us on-line and always offer free consultations.
Welcome 2010.
1/31/10