Common Level Ratio Down (slightly) in Allegheny County

Posted By Cliff Tuttle | July 9, 2017

No. 1,341

Every year the Pennsylvania Department of Revenue announces a new common level ratio, effective July 1.  It is a factor multiplied by the assessment which gives a calculation of the fair market value for purposes of paying realty transfer tax when a deed is recorded for no or nominal consideration. It is created by taking a random sample of transactions and computing the ratio of the sales price to the assessment in each case and then computing the average.

The current ratio is 1.4.  That means, if the assessment of a vacant lot is $10,000, you multiply it by 1.4 to get a fair market value of $10,400.00.  Of course, if the property is sold in an arms length transaction, you use the sales price, not the CLR, to compute transfer tax.

Last year, the CLR was 1.5.  It has been creeping up since 2001.  It was 1.00 in 2001, right after the reassessment in that year.  In 2000, just before the reassessment, the CLR was 5.24.

Not all Counties have rising CLR.  In Armstrong County, which hasn’t had a reassessment since 1997-8, the ratio is 2.11.  In the assessment year, the ratio was set at 2.00.

Westmoreland County, which hasn’t reassessed in many years, the CLR is 6.17. And in Washington County, which just completed a reassessment, the CLR is 1.00.

CLT

Welcome

CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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