
October 16

Reassessment questions

What is a reassessment?A reassessment, also called a revaluation, determines the market value of all property and property improvements in a given area. Assessments, which are used to calculate taxes, are based on the market value.

Reassessments are supposed to ensure that owners of equally valuable property are taxed similarly. Some states require regular reassessments, while Pennsylvania does not.

Why did Carbon County conduct a property reassessment?The county is obeying a court order. More than 600 owners of property in Carbon County went to court in 1994 to demand a reassessment, arguing that taxation of property had grown unfair since the last reassessment in 1969. In 1997 a judge agreed. The project was completed last year.

Does the reassessment mean my taxes will go up?No. The reassessment will redistribute taxes. Some tax bills will go up, others will go down, and some will remain about the same. Most assessments increased significantly during the reassessment, but state laws require that tax rates be cut to compensate for that. For example, the assessed value of all taxable property in the county increased more than 600 percent, so the county had to cut its tax rate for 2001 to about one-sixth of the rate before reassessment.

How can I find out the impact on my taxes?You can use The Morning Call's tax calculator. The county, townships and boroughs have set new property tax rates for 2001. The Morning Call's tax calculator uses actual tax rates to calculate municipal, school district and county property taxes.

How is a property tax bill determined?The bill is based on two things: a property's assessment and the tax rates set by school districts, municipalities and counties. Each branch of government sets its own tax rate, expressed in mills.

Just as federal income tax is determined by applying the income tax rate to one's income, property taxes are determined by applying property tax rates to a property's assessment.

What is a mill?A mill is a tax of $1 for every $1,000 of assessed property value. Suppose a home is assessed at $25,000, and the municipality sets its tax rate at 10 mills. The tax is figured by multiplying 25 by 10 (or $25,000 by .01), for a bill of $250.

What's the difference between market value and assessment?Market value is what someone would likely pay for your property if you were to sell it.

Property assessments in Carbon County equal 50 percent of market value.

So, if your property's new assessment is $50,000, that means the county believes the market value of your property is $100,000.

How was my market value determined?Cole-Layer-Trumble, the private company hired perform the reassessment, determined market values by reviewing the sale prices of similar properties. If there were not enough similar properties sold in a specific area, Cole-Layer-Trumble calculated the cost of building the house today, added the land's value, and subtracted depreciation on the building.

For commercial properties, the company considered the income they produce as well.

How do I know if my market value and assessment are correct? It's up to you to figure out if your property is worth what Cole-Layer-Trumble said it is. You can check to see if the assessment is fair by comparing your property to similar properties.

You can also use this Internet site to look up information on properties. Information is also available at the Carbon County Tax Assessment Office, Courthouse Annex, Jim Thorpe.

More than 5,000 property owners challenged their preliminary market values, and roughly 5,700 appealed their official assessments. Thousands were successful in getting them lowered.

How do I challenge my assessment?Appeals can be filed with the Carbon County Tax Assessment Office, and are heard by a review board appointed by the county commissioners. There is no cost to appeal, and property owners are under no obligation to hire a lawyer or appraiser, though some may want to consider doing so.

Appeals can be filed in any year. Check with the county tax assessment office for this year's deadline to file. Any changes made would impact property taxes in the following year.

What if I'm not satisfied after appealing?Assessments can then be challenged before the Carbon County Court of Common Pleas.

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