Rhoades to Introduce Legislation Limiting Local Government Assessment Appeals

HARRISBURG – Acting today to close a legal loophole that has resulted in property tax increases for many Pennsylvania homeowners, Senator James J. Rhoades (R-29) introduced legislation to limit when a local government can reassess property.

Currently, Pennsylvania’s Real Estate Assessment Law precludes a taxing body from appealing a property’s assessed value following a purchase. However, when the purchase price of a property is dramatically different than its assessed value, a local government can argue to increase the assessed value of the property, which translates to a property tax increase for the homeowner.

“The reassessment process can be costly for taxpayers who have already been hit hard by rising property taxes over the last decade,” Rhoades said. “We need to ensure that any property tax increases after reassessment are based on actual improvements on the property, not just the sale value.”

Under current law, local governments can appeal a property’s assessed value following a countywide reassessment. The measure would limit local taxing districts to appeal an assessment only if a property is subdivided or when improvements are added or removed.

Rhoades’ legislation would apply to counties of the Fourth through Eighth class, including all counties with populations under 210,000. Fifty-one of the state’s 67 counties would be covered under the bill.

“Since I came to office 27 years ago, the General Assembly has been looking for ways to significantly reduce property taxes to homeowners. We have passed a number of bills in order to achieve property tax relief. However, it seems time and time again, someone finds a loophole to increase them anyway.”

“Whether we call it an appeal, an assessment or anything else, this loophole results in property tax increases, and we should close it – today.”

EDITOR’S NOTE: Photo available at www.senatorrhoades.com