Will You Need to Appeal Your Reassessment?

We hope not.   That is because the process of appealing an unfair reassessment puts the burden of proof on you – the property owner.   Essentially, your reassessment is automatically considered fair until you prove otherwise.   Of course, as we all know, the process of reassessing every single property in the entire county is a huge undertaking.   It stands to reason that not every reassessment will be 100% accurate and fair.   The problem is, it can be difficult for an individual to successfully fight an unfair reassessment.    As a result, you could end up shouldering a substantially higher tax burden than you deserve.  

At the law firm of MEYER SWATKOSKI we have successfully represented property owners – both residential and commercial – for many years.   We have the knowledge and the resources to guide you through the appeal process to reduce your unfair assessment and potentially save you substantial tax dollars now and in the years to come.   If you suspect that your reassessment is not accurate, we invite you to contact us with any questions you may have.   In the meantime, here are some commonly asked questions and answers that will help you understand the reassessment process and what it means to you.

Q:   Why is it possible that my reassessment may be unfair?

A:    The process of reassessing each and every single property in a huge area like Luzerne County is a very big job.   We have no doubt that everyone involved will try to do the best and most accurate job possible, but human error is always a factor.   In addition, the assessors rely heavily on a computer program and a set of electronic data to help determine your assessed value.   This leaves open the possibility for additional inaccuracies.   Think of it this way:   When you trade in your car, you can connect to the internet and go to a website like Kelly Blue Book to input year, mileage and condition and receive an estimated value.   But when you go to the dealership, they inspect the car carefully and adjust that value.   Your car may actually be worth more or less than the computer-estimated value.   So, even though the assessment process leaves plenty of room for error, it is assumed that your reassessment is fair and accurate unless you can prove otherwise.   That is somewhat like being assumed guilty until proven innocent.

Q:   How is my assessment determined?   

A:   Your new assessment is supposed to reflect the “fair market value” of your property and under the new assessment program, your new assessed value will be 100% of the market value rather than 35% of fair market value, as is the case now.

Q:  Why is the 2008 reassessment an important issue for property owners like you?

A:   The last time properties in Luzerne County were reassessed was the 1960s.   Think of how much value your property may have gained since then.   Your assessed value has not changed in the interim, but have you added on or made improvements?   Has the value of properties in your community increased?   If so, then this is an issue which demands your attention.

Q:   Will my property taxes definitely increase as a result of the reassessment?

A:   Not necessarily.   However, it stands to reason that the majority of properties in the county have increased in value since the 1960s!   Therefore, we assume that the bulk of property owners will see at least a modest increase, while many others may see a substantial increase.

Q:   What if it turns out that my taxes will only increase somewhat?

A:   Just because the reassessed value of your property is less than you expected doesn’t necessarily mean that it is fair.   If you suspect that it is still too high, it is important that you investigate further.   When you think of how much even a modest increase in your assessment will increase your tax cost over a period of five, ten, twenty or thirty years, you can see why it makes financial sense to appeal an unfair assessment, even if it is relatively modest.

Q:   What is fair market value (FMV)?

A:   FMV is technically what a willing buyer would pay to a willing seller for the property in question.   FMV depends on the location and size of the property (land) and the building (dwelling or commercial) thereon, the number of rooms, improvements, garage (attached or detached), swimming pool, tennis court, sun porch, finished basement, etc., and the sales history of comparable properties in your neighborhood  

Q:   How will the new assessment affect the mileage rates?

A:   The current tax mileage in each municipality will be reduced to accommodate the increased assessment.   Each municipality’s mileage rates will vary depending on location, school districts and mileage requirements.   The objective is to keep them fair and consistent, but that cannot always be assured.   

Q:   How does the reassessed value of my property impact my tax liability?

A:   The assessed value of your residential or commercial property is directly related to how much you pay in taxes to not only Luzerne County, but also schools and the township or municipality in which the property is located.   As such, a higher assessed value for your property could mean that you are paying three higher tax bills across the board…for each and every single years that you own your property.   The costs of an unfair reassessment can really ad up over time.  

Q:   How do I appeal a reassessment that I consider to be unfair?

A:   Although the assessors relied heavily on a computer program, the process assumes that your reassessment is fair and accurate.   It is up to you, the property owner, to prove otherwise.    That is somewhat like being guilty until proven innocent.    As an individual representing yourself, the first step would be to complete your own assessment and compare it to the county’s to determine whether or not there are any discrepancies.   If you believe there are, the next step would be to file the appropriate paperwork before the deadline for all appeals and then represent yourself at an informal hearing before an appeals panel where once again, the responsibility is on you to prove that you are “innocent” of an unfair reassessment.   If your appeal is not successful or if the discrepancies complained of are not corrected, you must then appeal the Board’s decision before the Court of Common Pleas.

Q:   What proof must I present to the Board?

A:   Generally, an appraisal of your property by a “certified” appraiser must be obtained to determine if the county’s valuations are correct and a copy of his/her appraisal must be presented to the Board in person by you or your attorney.   It is also helpful to obtain assessed values for comparable properties to determine if they are consistent.   If your assessment is greater than someone else with a similar property, something is wrong.   Also, the county’s assessment information must be carefully reviewed to determine if it contains accurate information that affects the value of your property.   Any details that help your position should be presented.  

Q:   How long do I have to file an appeal?

A:   As of right now, we don’t know for sure.   Details are still being finalized but it appears likely that property owners will have just 40 days to file for an informal appeal with the assessors.    Should the appeal before the Luzerne County Board of Assessment Appeals be unsuccessful, the property owner must appeal the Board’s decision before the Court of Common Pleas.

Q:   What if you decide to hire an attorney to represent you in your appeal:

A:   An experienced attorney who has successfully represented clients in matters like this will be able to guide you through the somewhat daunting and time-consuming appeals process.   ATTORNEYS AT MEYER AND SWATKOSKI have over 40 years of experience in handling tax reassessment appeals and other matters of real estate law.   Our firm would welcome the opportunity to answer any questions you may have.

Q:   What happens if I do nothing?

A:   The new tax assessment assigned to your property will become final after the appeal period expires, and the applicable taxes based on that value will be your responsibility.