NEW TAX STEB RATIO IS LOWER, BUT FILING AN APPEAL MAY NOT BE THE RIGHT MOVE!

NEW TAX STEB RATIO IS LOWER, BUT FILING AN APPEAL MAY NOT BE THE RIGHT MOVE!

September 14, 2011

Most likely you have read or heard that the Pennsylvania State Tax Equalization Board (“STEB”) announced that the 2010 STEB ratio for Philadelphia is now 18.1%, changed from the 32% of prior years.  This new STEB ratio should be applied by the Philadelphia BRT in all tax appeals for 2012, which must be filed by October 3, 2011.

While it may seem that is a reason to file a tax assessment appeal for every property in Philadelphia, and should result in an automatic tax reduction of about 40%, IT IS JUST NOT THAT SIMPLE.  We believe each property must be individually evaluated.  It could be in your best interests to appeal now, or NOT to appeal.

It is too soon to know how the City will respond to this major change in the reported STEB ratio:  it can challenge the accuracy of that number, and with all the chaos at the BRT it is uncertain if or how the ratio will be applied to tax appeals this year.  Moreover, the use of the STEB ratio is very complicated.  There can be serious risks for the 2012 and future tax years in rushing to appeal based only on this ratio change.

For over 35 years, our law firm has successfully represented owners of properties of all types and sizes in a myriad of real estate matters, including tax appeals.

We encourage you to call us – AT NO CHARGE – and let us evaluate the current tax status of your property to help you determine if an appeal should be filed at this time.

Please feel free to contact either David Fineman or Gary Krimstock at 215-893-9300, and we will analyze your real estate tax situation.