‘Only Two Things Guaranteed in Life: Death and Taxes’ – Assessments Reviewed

Ron Wilshire

Ron Wilshire

Published September 9, 2019 4:45 am
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CLARION, Pa. (EYT) – A Wayback Time machine is needed every time an assessment is made in Clarion County, even though Mr. Peabody and Sherman are nowhere to be found.

The fictional Time Machine would be set for the year 1975 because all tax assessments must be set to estimate 1975 real estate prices. The last year that Clarion County had a countywide reassessment was 1975.

While no countywide reassessments are currently being planned, the fairness of such an operation can be questioned, according to Clarion County Commissioner Ted Tharan.

“It would make it fair for everybody,” said Tharan. “There are two things that are guaranteed in life: death and taxes.

“Nobody likes taxes, but I think everybody wants fair and equal taxes. In a reassessment, everybody is assessed at today’s current value.  Right now, we’re at 1975 values.  There are not very many counties in the state older than Clarion County in reassessment.”

Some even labeled it political suicide a couple of elections ago when even a suggestion was raised.

Tharan isn’t so sure — but admits the cost of a countywide assessment would be millions of dollars.

“Recommendations from the state and all authorities are that every county should do a reassessment at the most every ten years. Some places say every seven years. It’s a costly maneuver to do a reassessment, but that’s the only way you can find all of the parcels and equally tax. I think a school district or municipality could go to court and force a reassessment if they’re taxed out to the limits and can’t raise any more taxes.”

A 2010 study by the Center for Rural Pennsylvania recommended passage of legislation that requires all counties to conduct countywide property reassessment a minimum of every four years. The study indicated regular countywide reassessments would ease the residential property tax burden; ensure a more equitable tax system across each county; and bring the property assessment system into compliance with the uniformity clause of the state Constitution.

Instead of a reassessment, Clarion County is trying to add properties that for one reason or another are not on the tax rolls.

“A lot of times people just go and build something without a permit; or the townships and boroughs did not notify us that there was a new structure; or that John Smith built a new garage and that structure is not on the tax rolls,” continued Tharan.

“We look at satellite maps and pull the cards out. The cards tell you what kind of buildings are on the property, and we can compare the cards with the satellite images of the property to see if there is anything else on the property besides what is on the card. If we see a building that is not on the card, we go out and tell them we need to assess this new building you have.

“If you own a piece of property, and if you got a permit (and) build a garage, you’re going to pay tax on your garage. Assessment is the fair way to do it, but it’s not fair to the person paying their tax for their neighbor who built a garage and didn’t tell anybody about it and not pay tax on it.”

Tharan praised the efforts of the assessment office in adding missing properties but acknowledges there are still more out there.

“You have to remember that the last time there was a reassessment done, it was 1975. There’s a formula they use to calculate what the costs would have been back in 1975, and it is based on the common level ratio.”

Appeals Increase

Appeals of the assessed value of real estate in Clarion County have shot up to 42 in 2019 from 27 in 2018. Appeals are usually made in hopes of reducing an assessment, and in turn, lowering the amount of taxes.

The assessed value is a county assessment of the property, but not the same thing as market value. Market value is the price someone would pay an owner taking into consideration all uses to which the property is adapted and might be applied.

Assessment appeals are now only accepted once a year on August 1.

Charity Rittmeyer, director of the Clarion County Assessment Office, said there is one reason for the increase in appeals this year.

“The Common Level Ratio went up, and that’s why there are a lot more appeals this year.

It depends on your real estate sales in the county and other factors and is set by the State Tax Equalization Board (STEB). Last year it was 3.34 this year it’s 4.88.”

Surrounding counties had the following ratios: Venango, 1.08; Jefferson, 2.64; and Forest, 5.32.

Three days have already been scheduled for appeals in September. The three Appeals Board members will listen to people who have applied, appraisers, and attorneys. The board will consider the presentations and make a decision.

STEB’s primary function is to determine the aggregate market value of taxable real property in each political subdivision and school district throughout Pennsylvania, according to the STEB web site. The market values are certified annually to the Pennsylvania Department of Education and the respective school districts on or before July 1 of each year. These market values are used in a legislative formula that determines the distribution of the state subsidies to each school district.

Commissioner Studying Statewide Assessment Issues

The County Commissioners of Pennsylvania (CCAP) members chose six priorities for 2019, and assessment reform was one of the priorities. Other priorities include:

  • Election equipment and voting systems;
  • Forensic services for seriously mentally ill county inmates;
  • Human services funding and system reform;
  • Rural broadband expansion; and
  • Preventing substance abuse.

CCAP is organizing training sessions for assessment office employees.

The Assessment Reform Task Force also recommended several other pieces of legislation around sales data verification, building permit reform, and certification for third party contractors, which have been reintroduced by members of the Local Government Commission.

In June, the House of Representatives unanimously approved HB 1032, introduced by Rep. Lee James (R-Venango), to add two Certified Pennsylvania Evaluators (CPEs, the designation which much be obtained by county assessors who are responsible for valuing property) to the State Board of Certified Real Estate Appraisers.

The House also approved HB 1033, sponsored by committee chair Rep. Dan Moul (R-Adams), by a 197-3 vote to clarify that third-party contractors hired to complete countywide reassessments must be certified as CPEs; and Rep. Garth Everett’s (R-Lycoming) HB 1034 by a 196-4 vote to improve proper and timely submission of building permits to county assessment offices.

These three bills will now go to the Senate for its consideration.

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