I've heard that I can appeal my property taxes. Is that true and how do I go about it?
With the decline in real estate values, many homeowners have opted to appeal their property taxes. This is especially the case for new construction homes that often have substantially higher property taxes than their established neighbors. Also, some homeowners have had their property taxes rise due to home improvements or additions; but now they may not realize the full resale value the tax assessor placed on the improvement at the time of assessment.
To appeal your property taxes, you must first determine if you are in fact paying a higher property tax than other homeowners whose homes have a value equal to yours. If after an apples to apples comparison, you are paying the same or less than other homeowners in your area, you will probably not be eligible to receive any property tax relief.
To find this out, you will need to determine your home's "market value' according to the taxing authority. The key is to find the "sales ratio" for your municipality. Divide (or multiply if appropriate) the assessed value by the sales ratio to give you the "market value" on which you are being taxed. You should be able to get the sales ratio from your tax authority (it may be called something else such as assessment ratio, common level ratio, residential assessment level, equalization rate, etc).
For example, the common level ratio in Montgomery County, PA through June 30, 2010 is 1.85. So, if your home in Montgomery County has a County Assessment of $200,000 (the assessment is on your property tax bill), then the current perceived market value is $370,000 ($200,000 x 1.85).
The ratios change each year, but other current common level ratios for the communities in and around Montgomery County, Pennsylvania are:
Bucks County-10.31 
Chester County-1.89
Delaware County-1.63
Berks County-1.48
Philadelphia County-3.06
After you find the "market value," compare it to the sales price of comparable homes that have recently sold in your area to see if the values match. Adjustments may need to be made for features of the sold listings that differ from yours. But in the end, if you find that the true market value of your home is significantly lower than the property tax assessor's perceived market value, then you should proceed with a property tax appeal.
You should also check your local township or borough to see if their sales ratio is the same or different from the county's. Property tax appeal forms are available on the county websites. There is a fee to have your appeal reviewed, so make sure you have done your homework and can substantiate your appeal. Good Luck!
~Lisa
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
Keep in mind that you can not appeal your taxes, you can only appeal your assessment.
Hi Robert, You are right that you are actually appealing the assessment which is the basis for how much you pay in property taxes. Thanks for the clarification. ~Lisa
Lisa, this is great! More than a few of my clients have successfully appealed their assessments.
Can you appeal your assessment if there are other issues that weren't there when you bought, but would affect the quality of living and probably decrease the sale price of your place?
I am not sure what quality of life issues you are referring to but if something has changed that impacts your neighborhood (for example a highway was built on a trac of land adjacent to your home) and has caused a decrease in the market value of your home, then you probably have grounds to appeal your taxes. Recent sales information of other homes similarly impacted would help your case.
Hope that helps.
Lisa