Cumberland County s 2010 Reassessment Bonnie Mahoney, Chief Assessor Jerry Wilkes, Director of Information Technology Our Goal: Inform the public about reassessment V3
Bottom Line The goal of reassessment is simply to restore fairness to the taxation system we have.
Topics Reassessment history How the market has changed since 2004 The reassessment schedule and process Commercial appraisal of value Mass appraisal of value Appeals How to be successful Questions
Reassessment in Cumberland County 1973 Commissioners voted out afterwards 2000 Forced by threat of law suit 2004 Based on 4 year schedule 2010 based on market conditions
Market Changes Since 2004 Based on valid sales it is up over 25% Different properties and types of properties - appreciated differently.
When Assessments can be changed in Pennsylvania Appeal by owner or taxing body Building permit County wide reassessment Real estate taxes are based on assessed value not market value
The Reassessment Schedule and Process 2008 2009 2010 2011 Decision and preparation Data gathering, neighborhood delineation, model construction and valuation Notices mailed; appeals; value certification New assessed values in effect for taxing entities 96,000 parcels 800+ neighborhoods 9 Assessors all certified, all County employees
Valuation of Property Computer Assisted Mass Appraisal: Define neighborhoods Determine comparables from valid sales Create and apply models Test results
1. Define Neighborhoods Identify groupings of properties that behave similarly in the market Classic single-builder developments most perfect example Residual neighborhoods 800+ so far
2. Comparables from Valid Sales Identification of arms length sales Grouped by neighborhoods and (for residentials) style/size/amenities Forms the basis of computer assisted mass appraisal (Commercial properties usually appraised using an income basis)
3. Create Models Understand relationships between amenities (e.g. living area, lot size, # bedrooms) within property types and sales Create valuation model based on comparables
Commercial Appraisal an Art May 2, 2010 $120 Adjustments Apr 16, 2010 $110 Mar 30, 2010 $115 Adjustments Adjustments $115? Comparable properties that have recent market sales Your property
Computer Assisted Mass Appraisal (Create Value Models) May 2, 2009 Apr 16, 2007 Dec 30, 2009 $105000 $100000 Time adjusted value Jan 1, 2010 $120000 $110000 $115000 Model: Neighborhood #234 Sq Ft = $45 ea under 2000, $35 ea over 2000 Bedrooms = NC if 3, Deduct $12000 if 2, add $6000 if 4 Lot: $25000, deduct $5000 if corner, add $10000 per.1 ac over.25 $115000 Avg = $115000 Deduct $6000 if no fireplace Single story properties with market sales < 5 years in neighborhood #234 Valuation of Amenities and Physical Characteristics
Apply Value Model Model: Neighborhood #234 Sq Ft = $45 ea under 2000, $35 ea over 2000 Bedrooms = NC if 3, Deduct $12000 if 2, add $6000 if 4 Lot: $25000, deduct $5000 if corner, add $10000 per.1 ac over.25 Deduct $6000 if no fireplace Your House 1750 sq ft 3 br.35 ac No fireplace Predicted value $78750 0 $35000 -$6000 $107750
4. Test All neighborhoods revisited using GIS theme maps for consistency Oddities and outliers examined again Statistical analyses Chief Assessor performs final checks before acceptance
2010: Notice Mailing Timeline School Districts and component Municipalities Big Spring, Shippensburg, South Middleton Carlisle, West Shore, Mechanicsburg Cumberland Valley, East Penn, Camp Hill Mail Date Mar. 1, 2010 Apr. 17 May 3, 2010 Jun. 14 Jul. 1, 2010 Aug. 10 Last Day to File Formal Appeal DONE DONE Mailing Reassessment Notices starts a 40 day legal timeline for appeals!
Appeals 1. Call in to Tax Assessment Office talk with an Assessor (Phone # on Reassessment Notice) 2. Schedule an informal appeal 3. Schedule a formal appeal with the Board of Assessment Appeals requires written request 4. File an appeal with the Court of Common Pleas
How to Appeal (Informal or Formal) Poor approaches Joe s assessment is lower than mine Address separate values for house and land Magical simple ratios (e.g. Common Level Ratio, sq ft of other houses) Price paid previously
How to Appeal (Informal or Formal) Good approaches New, substantiated information Correction of descriptive data Comparables Commercial appraisals (submit ahead of time to allow study) Documented restrictions or degradations not known to assessors
After Appeals County Commissioners must certify new values by November 15, 2010 for the 2011 tax year 5% tax increase limits for local governments 10% tax increase limit for school districts
Reassessment is Revenue Neutral not a general tax increase 2010 Tax Revenue New Total Assessed Value = New tax rate Amount collected by the taxing entity remains the same Amount paid by individual taxpayers will vary Fairness is restored to the real estate tax system Each taxing entity must make this calculation
Bottom Line The goal of reassessment is simply to restore fairness to the taxation system we have.
Questions? Cumberland County 2010 Reassessment