Ultimate Lehigh County Real Property Tax Guide for 2024
Guide Overview
With our guide, you can learn valuable knowledge about Lehigh County property taxes and get a better understanding of what to anticipate when you have to pay. Should you already be a resident, thinking about it, or only planning to invest in Lehigh County, read on to obtain a sense of what to look forward to.
Average Property Tax Rate in Lehigh County
Lehigh County Property Taxes Range
Lehigh County Property Taxes Range
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You May Be Charged an Unfair Property Tax Amount
Maybe you aren’t informed about your property levy showing a higher rate than is warranted by your property’s market value. No mystery though when assumed similar properties in neighborhoods are appraised at the same fair market value based upon only a few — again presumed — similar properties’ estimated values. Then take into consideration the likely assessor’s errors. Fortunately, you have the right to protest, and with good evidence presented on time, your assessment will be lowered.
In the event you gotten a refinancing loan lately, be certain duplicate billings haven’t been imposed. It’s crucial to analyze your tax bill scrupulously. Every taxpayer’s levy is obtainable to visitors online. Contrast your property’s estimated worth against like houses in your community while at the same time taking special note of just completed sales. Look into recent hikes or weakenings in real estate asking price trends.
Should you uncover what might be an overstatement of tax due, it’s time to respond quickly. A no-brainer or unsure whether to go forward with a protest or not, don’t distress. There are protest companies standing by to carry on your challenge that only collect on a percentage of any tax cuts. More information to follow in the guide.
What Is a Tax Protest Procedure?
When you have reason to believe that your property tax value is too high, you can always question the valuation. Lehigh County is accountable for assessing the tax value of your real estate, and that is where you will register your appeal.
Lehigh County tax office and their website provide the rules, procedures, and filing forms that you have to have. Before you start, be certain you grasp the rules for filling out the documents and preparing your appeal. Your appeal filing may not be accepted if you do not precisely complete the documents by the deadline.
Your tax notification will provide you with a time window in which you can file your appeal. If you miss that time window, you may lose your right to appeal the appraisal.
You’ll be more successful if you receive a full copy of the valuation file from the county. The valuation report might be the determining factor in the success of your appeal. You will have a better possibility of obtaining a new valuation of your property if mistakes were made in the report.
If you have a strong case, your filing may be handled promptly via an informal process. Otherwise, you’ll have to appear before a review board and submit your case in detail. The panel will exclusively be interested in seeing evidence that the appraisal is wrong and nothing else. Excessive real property tax rates and strong property value growth in your neighborhood are not valid reasons to appeal.
If you think that you have proven your case but the county did not agree, you can appeal their determination to your state’s assessment office. If the case requires going to court, it may make sense to get service of one of the best property tax attorneys in Lehigh County PA.
It is your right to question your real estate tax value assessment. But, prior to beginning a time-consuming process, perhaps you ought to reduce the valuation to dollars. Figure out what your real real estate tax bill will be with the higher value and any tax exemptions you are allowed. What appears to be a significant increase in value may actually turn into a modest hike in your property tax payment.
How to Get Your Taxes Reduced for Free?
Numerous tax appeal service providers carry out all facets of your challenge on a contingent basis. Such an arrangement means the cost you are billed won’t exceed a percentage of any tax savings. In the instance of zero savings, you pay nothing!
They’ll examine present assessments, conduct more in-depth research, look for missing exemptions, explore tax rolls for mistakes, file appeals before attending meetings, and orchestrate legal actions when called for. Tax exemptions especially have proven to be a fertile sector for adding overlooked ones and supporting any being questioned.
Two conventional approaches for assessment re-evaluations are mostly used to bolster protests. They’re known as “sales comparisons” and “unequal appraisals”. Both involving local real property, sales comparisons estimate market values using recent sales data while unequal appraisals expose appraisal imbalances between similar real property.
As a rule, a sales comparison approach is the preference of boutique firms. Often it’s a complete assessment of the subject real estate. Carried out by a State Licensed appraiser, its conclusions are of incontrovertible value. Only a thorough review of the complete appraisal procedure could conceivably upset the specialty firm’s revisions. Let’s say four local similar buildings sold for $1,000,000 recently, but the subject property with $100K in wind damage now has a $900K true worth.
Large firms in particular use an unequal appraisal process for tax savings even when estimated values aren’t out of line with existing market values. An area list of equivalent properties having nearly the same estimated market values is assembled. Next comes a contrasting of these real properties’ respective tax levy amounts within each group. Material inconsistencies, (for example properties’ bills are higher by at least 10 percent of the representative median level) are flagged for more analysis. They usually charge clients a fraction of any tax decrease rather than flat, out-of-pocket costs.
Find a tax professional meeting your needs in this directory containing the best property tax protest companies in Lehigh County PA.
How Does Lehigh County Real Estate Tax Work?
Endowed authority by the state, district governments oversee property taxation. Generally taxing districts’ tax assessments are merged under the same bill from the county. Then receipts are allocated to these taxing authorities according to a standard plan. Along with collections, real estate taxation involves two more common operations: establishing property tax rates and directing assessments.
Counties and cities in addition to thousands of special purpose districts hold taxing authority given by Pennsylvania law. These entities are legal governmental districts operated by officers either appointed or voted in. Such units, for example public schools and hospitals, serve a defined area, i.e. a county, township, school district, etc.
The city’s conduct of property taxation must not disregard the state’s constitutional guidelines. Property not exempted is required to be taxed equally and uniformly at present-day market values. Taxpayer’s rights to timely alerts to tax levy hikes are also obligatory.
While maintaining statutory checks prescribed by statute, the city sets tax rates. As we’ll explain further, appraising property, billing and taking in payments, undertaking compliance tasks, and clearing conflicts are all left to the county.
The present-day value of real property found within your city is estimated by county appraisers. The state also has instituted instructions that Lehigh County officials are mandated to observe in analyzing real property. These imperatives are set to boost evenness throughout the state. This is a prime area to look carefully for appraisal discrepancies and human error.
With many versions, there are three main appraisal methodologies for determining a home’s value. A Sales Comparison method is set by comparing a property with similar units sold not long ago in the same area. The Income Method is predicated upon how much rental income possibly would be generated from income-producing property. One Cost Approach variation assumes commercial real estate worth should equal the present cost for a building replication while factoring in depreciation and land value.
A county assessor normally reevaluates your property’s market value once every three years at least. That value is multiplied times a total tax rate, i.e. the total of rates set by all related public entities. Taxing units include cities, county, school, and various special purpose districts like sanitation treatment plants, athletic parks, and colleges.
Who and How Determines Lehigh County Property Tax Rates?
According to the state’s constitution, property assessments are conducted by counties only. These estimates have to be recorded without consideration for revenue hits.
Under the state code, new estimations must be undertaken periodically. Commonly, appraisers lump together all like properties located in the same community and collectively apply one-fits-all assessment strategies. Any distinguishing property value discounters, e.g. a severely wind-damaged roof, will be overlooked with you losing a possible tax reduction.
For older properties, appraisers begin by bringing the tax rolls (real estate listings) up to date. These lists offer descriptions of all property located within that area’s borders. After being constructed, structures were grouped by such features as structure kind, size, and year built. Property age and location were also considerations allowing assessors to group units and collectively affix estimated market values. Absent an individual inspection, this sometimes old and unreliable information – coupled with fresh sales statistics – is what assessors are usually equipped with every new assessment cycle.
Mandated by state law, this process is supposed to distribute the tax hit in an even way across the state with even-handed real estate assessments. Given this one-size-fits all process, it’s not only probable but also inescapable that some market value estimates are off the mark. Often this is a fertile area to identify appeal evidence!
The city and every other in-county public taxing district can now compute needed tax rates as market worth totals have been recorded. As computed, a composite tax rate times the market worth total will provide the county’s whole tax burden and include individual taxpayer’s share. This is largely a budgetary function with unit directors first budgeting for yearly spending targets. After this it’s a matter of determining what composite tax rate is required to correspond with that budget. In theory, at least total receipts will equal the fund needed for all planned projects that year.
In the state there are numerous neighborhood-based public entities from counties to cities to special purpose districts. Each entity sets its individual tax rate. Nearly all the sub-county entities have contracts for Lehigh County to bill and collect their tax.
The budget/tax rate-setting exercise typically gives rise to regular public hearings to deliberate over tax rates and similar budgetary questions. Lehigh County residents have the right under state law to demand a public vote when proposed tax hikes top established limits.
In establishing its tax rate, the city is mandated to observe the state Constitution. In short, rates must not be raised until after the city provides notice of its plan to contemplate a hike. Also a public hearing on any proposed raise must be held before it occurs.
If Lehigh County property taxes are too costly for you and now you have delinquent property tax payments, you can take a quick property tax loan from lenders in Lehigh County PA to save your property from a looming foreclosure.
What Are Lehigh County Real Estate Taxes Used For?
Real estate tax funds are the mainstay of local neighborhood budgets. Together with Lehigh County, they count on real estate tax revenues to perform their public services.
Pennsylvania cities depend on the real property tax to fund public services. It usually accounts for the biggest segment of the general revenue fund in these jurisdictions. Not just for the county and cities, but down to special-purpose districts as well, e.g. water treatment stations and athletic parks, with all reliant on the real property tax.
A significant portion of real estate tax revenues goes to public schools. Another big chunk is needed for city and other public employees’ wages and benefits. Paying for police and fire protection is another essential expense. Then there’s street construction and different other transportation needs. Also sanitation, with water and sewer treatment plants and refuse removal. One more category is organized recreation resources, such as athletic courts, and other entertainment amenities. As is said, “It all adds up!”
How Are Property Taxes Handled at Closing in Lehigh County?
Property taxes are usually paid in advance for the entire year. That raises the question: who pays property taxes at closing if it happens mid-year? Real estate ownership switches from the seller to the purchaser on closing. And so does the obligation for paying real estate taxes. They repay the previous owners at the juncture ownership is transferred.
Paid-in-advance tax refunds don’t usually take place as direct repayments to the former owners. Rather loan lenders, settlement attorneys, or escrow companies will factor in the prorated tax with other purchaser payment responsibilities on settlement.