Maybe some relief from Tax Assessment Issue

Just read an article in the June edition of The Pennsylvania REALTOR^®  about two companion pieces of legislation being taken through the process in the State Legislature.  The House version was introduced by Rep Tim Seip of Schuylkill County (HB 1438 and 1439) and the Senate version was introduced by Sen James Rhoades also of Schulykill County (SB 1247 and 1258).

The purpose of the Bills is to close the loophole in current law which is being  exploited by school districts in the State (including Jim Thorpe School District right here in Carbon County) to appeal assessments based upon sales price thereby creating inequities in the assessment structure and among homeowners.  This practice has hit Carbon County especially hard in the Towamensing Trails, Split Rock and Lake Harmony areas but I am sure elsewhere as well.

The Pa Association of REALTORS^® is supporting the legislation as it has had a chilling effect on real estate transactions for a while in this area and that is in addition to the effect caused by the current worries about the economy, gas prices, and the general reluctance to commit to real estate investment caused by those worries.  A past President of the Lehigh Valley Association of REALTORS^® has provided testimony that there is evidence that prospective "buyers strongly reconsider looking at homes in districts that are appealing assessments after the sale", according to the article.  Part of the issue is that many Counties had delayed their County-wide reassessments for so long that an imbalance built into the system.  However, this is only further exacerbated by the current practice of after sale appeals by the Taxing Authority.

The point here is that there may be some light at the end of this tunnel based upon the legislation proposed.  The trail of this issue through the court system has not yielded very satisfactory results from the homeowner perspective and MAYBE legislation can correct what judicial fiat has done.  If you are interested in this topic, you can follow the Legislative process to keep abreast of it and we will try to keep you up to date from a REALTOR^®  perspective as we get more information.