A lower common level ratio (CLR) will go into effect in Allegheny County for tax year 2025, bringing the potential for major tax savings to property owners — and a short window to take advantage of it.
Below are answers to some frequently asked questions about how Allegheny County’s updated CLR can impact assessed values and property taxes:
In June, Allegheny County moved up the 2025 Allegheny County property tax assessment appeal deadline to October 1, 2024 from March 31, 2025.
Each county in the state will vary. Click here to see appeal deadlines for western Pennsylvania counties.
Every county has a “base year” for tax assessment purposes. Property assessments are supposed to reflect a base year valuation. The base year for Allegheny County is 2012. The CLR is a ratio which is intended to convert present day market values into base year assessed values. The CLR is adjusted annually based on sales data selected by each county.
In 2025, Allegheny County’s CLR will drop to 52.7%. Four years ago, Allegheny County properties were assessed at 86.2% of market value. At that time, a property worth $1,000,000 was assessed at $862,000. Today a $1,000,000 property should be assessed at $527,000.
Yes. This applies to all property in Allegheny County, commercial and residential.
When it works to their benefit, taxing authorities chase new sales and seek an increase in assessed value. In doing so, the taxing authorities are essentially asking that a new “snapshot” of market value be taken and the CLR applied to the sales price.
No, you must have a pending tax assessment appeal to get the benefit of the ratio. If you do not file an appeal, no one will file an appeal for you. Taxing authorities only file tax appeals on properties where they believe they can increase the property’s assessed value, resulting in higher property taxes.
Property taxes are based on assessed value. Assessed values are taxed at the millage rates set by your County, school district, and local municipality. Assuming no change in millage rates, a lower assessed value means lower property taxes. Taxing authorities may increase their millage rates to avoid a large drop in tax revenue resulting from fewer assessed dollars. If millage rates increase, each assessed dollar will be taxed more. In a rising millage rate environment, property owners will see tax increases unless they can reduce their assessed value via a tax assessment appeal.
The answer to this question will vary based on each property’s use, market value, current assessed value, and the strategies available to obtain a reduction for that property. The attorneys in Meyer, Unkovic & Scott’s Real Estate Group have substantial experience representing property owners with property tax assessment appeals in Allegheny County and throughout Pennsylvania.
For further information on the adjusted CLR, the potential benefits, and the risks of staying idle, please read the Frequently Asked Questions (FAQ) and Commercial and Residential example documents, linked here. Please fill out the form below if you would like someone to follow-up with you, or feel to reach out to Jason Yarbrough at [email protected] or 412-456-2592. Click here for more information on our Real Estate Tax Assessment Practice Group.
ADDITIONAL ARTICLES:
• Government Budgets Face Major Disruptions from Tax Assessment Appeals, The Pennsylvania Lawyer, July/August 2024.
• Real Estate Advisory: 2025 Allegheny County Property Tax Assessment Appeal Deadline moved Up to October 1, 2024, MUS Client Advisory, June 7, 2024.
• Interview, ‘Some Kind of Systemic Breakdown:’ Property Owners Waiting Months for Assessment Refunds that Should Arrive in Just 30 Days, Pittsburgh Post-Gazette, May 16, 2024.
• Interview, No letup: City, school district could be dealing with more building assessment cuts in 2024, Pittsburgh Post-Gazette, April 18, 2024.
• Unpacking Allegheny County Tax Assessment Appeals: Helping Clients Secure Savings in 2024, The Legal Intelligencer, March 29, 2024.
• ‘A big number’: Allegheny County Council action could trigger thousands of assessment appeals — retroactively, Pittsburgh Post Gazette, January 26, 2023.
• Real Estate Advisory: Allegheny County Council Votes to Reopen 2022 Tax Assessment Appeals, MUS Client Advisory, January 25, 2023.
• 2023 Tax Assessment Appeal Deadlines Fast Approaching In Many Western Pennsylvania Counties, MUS Client Advisory, July 19, 2022.
• In 2023, tax breaks could await property owners who file assessment appeals in Allegheny County, Pittsburgh Post-Gazette, June 30, 2022.
• Owners of Downtown Pittsburgh skyscrapers, other commercial properties could benefit from assessment appeals deal, Pittsburgh Post-Gazette, May 9, 2022.
• Potential for Large Reductions in Assessed Value for Allegheny County Property Owners, MUS Client Advisory, May 3, 2022.
• Empty Office Buildings Squeeze City Budgets as Property Values Fall, The New York Times, March 3, 2021.
• COVID-19 Fallout Could Lead to Lower Commercial Property Taxes, Bloomberg Tax, July 14, 2020.
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Jason M. Yarbrough
Jason M. Yarbrough is a Partner and Chair of the firm’s Real Estate Litigation Section, Co-Chair of the firm’s Summer Associate Program, and a member of the firm’s Construction Law, Creditors’ Rights & Bankruptcy, Energy, Utilities & Mineral Rights and Litigation and Dispute Resolution Practice Groups.
Jason frequently represents clients in complex commercial, real estate and construction disputes. His real estate litigation practice includes disputes involving the acquisition and development of real property, landlord tenant disputes, property rights, property tax assessment appeals and exemption proceedings, land use and title disputes, partition actions and foreclosure proceedings. In his construction practice, Jason represents owners, developers, contractors, architects, and engineers in disputes arising out of both public and private construction projects. He has litigated claims in state and federal courts, and against state agencies and the federal government.