PA Supreme Court Approves Voting On Philadelphia’s Board of Revision of Taxes
Voters in Philadelphia may be able to decide on a new approach as to how their properties will be taxed in accordance to the ways in which the value of real estate is established and contested. A new charter is in the wings to get rid of Philadelphia’s Board of Revision of Taxes and initiate two new agencies – an Office of Property Assessment and an independent Board of Property Assessment Appeals.
An article from The Philadelphia Inquirer reports that the Pennsylvania Supreme Court ruled on April 27, 2010 to allow a primary election vote scheduled for May 18 which is focused on abolishing the Board of Revision of Taxes in Philadelphia and replacing it with two new bodies. While the BRT asserts that prospective alterations to the charter are illegal, the Supreme Court ruling made no judgments based on these statements.
If the charter is approved by Philadelphians and if no other challenges are made, real estate values would be set under the circuitous control of the mayor in an Office of Property Assessment entity. In addition, cases presented by property owners regarding improperly calculated real estate values would be handled by an independent Board of Property Assessment Appeals group.
The Pennsylvania Local Government Commission reminds us that the real estate tax is the only tax authorized by law in Pennsylvania to be imposed by all classes of local governments within the state. As one of the primary sources of funds for PA local governments, real property taxes influence property owners to a great degree in which real estate taxes are typically owed to the county, the municipality, and the school district with the same voting boundaries. Pennsylvania assessment laws call for real estate value to be based on its “actual value” and at a legitimate rate and price for which the property would independently be sold for.
The city of Philadelphia has the right to take control of property assessments if it believes the entity in charge is not fulfilling its duties. However, according to the article, the BRT contests that its power to hear property assessment appeals would be taken away by an entity other than the legislature.
With the housing market in Philadelphia and throughout the state of Pennsylvania still on the road to recovery, the amount a person is taxed for real estate has played a greater role than most people have ever experienced before. It is during such times that it may be necessary for a reexamination of how property assessment and real estate value appeals are being handled and what potential changes can be made to the process.
