There is no question that the onset of the pandemic COVID-19 has had a significant and debilitating impact on all segments of our lives and economy. Businesses have been closed and we have been isolated from family and friends. Even if the restrictions are eased on a rolling basis, the effect will be long-lasting and difficult to discern.
One potential impact that must be considered is the possible reduction in the value of real estate that you own. Whether you are a residential home owner, a developer of apartment/condominium projects, or the owner/developer of commercial, retail or industrial properties, the pandemic has and likely will result in a downward trend in the value of your property. However, your real estate taxes will not be reduced, unless you take some action.
Unfortunately, there is no immediate relief available to help you through this critical period and to soften the impact of real property tax payments that remain due and payable. Real estate taxes are based on assessments that come into effect on January 1st of each year. However, it is likely that the real estate market will remain in a depressed state even after we return to some degree of normalcy, even if your tax bill remains the same.
What can you do? There is a procedure in place in all counties, including Philadelphia, for the filing of assessment appeals. Outside of Philadelphia, all appeals must be filed by August 1st. In Philadelphia, the deadline is October 1st. This procedure is especially critical for those of you who own income-producing properties, where the appraised value of your property is determined on an income valuation approach. With the possibility that many of your tenants will be closed, or seeking rent reductions, the value of your property using that analysis will be lessened.
You must be prepared to file what is known as an assessment appeal by the deadlines, in order for it to become effective on January 1, 2021. Goldstein law Partners is prepared to assist you in filing the appeal so that your tax liability will be more in line with the actual value of your property. Please call Michael Yanoff, Esquire at 267-627-2485 for a free consultation.