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Resolution establishing policy of Allegheny County to use sales price data to establish assessments of residential property within the County.
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Whereas, the principal source of revenue for Allegheny County is derived from taxes levied upon real property;
Whereas, the amount of property tax that owners of real property must pay is determined by the assessment of the fair market value of that property;
Whereas, Allegheny County recognizes the fundamental importance of employing an assessment system that results in the highest possible degree of accuracy, uniformity, objectivity, and fairness;
Whereas, Allegheny County's historic emphasis on "comparables" and other factors other than sales price in determining assessments is overly subjective and has led to inconsistent, non-uniform and inaccurate assessments and, therefore, an unfair tax burden for many residents of Allegheny County;
Whereas, Allegheny County now possesses sales price information of real property in computerized form;
Whereas, computer programs have been and can be developed using sales price information to determine to a high degree of accuracy geographical trends and inflationary factors affecting the fair market value of real property;
Whereas, sales price is consistently the most reliable and accurate indicator of the fair market value of real property and is more accurate than other, more subjective, factors, including the selection and use of "comparable sales";
Whereas, an assessment system based upon objective factors would lead to fairer assessments; and
Whereas, an assessment system based upon objective factors would give the assessment system much greater credibility among taxpayers.
The Council of the County of Allegheny hereby enacts as follows:
Section 1. Statement of Policy. It shall be the policy of Allegheny County to use, whenever possible, the sales prices of real property, adjusted for inflation, as the principal factor for determining the fair market value assessment of real property in Allegheny County.
Section 2. Base Assessed Value. Where real property is sold in an arms-length transaction between unrelated parties, or where such a sale occurred within the (10) years prior to the effective date of this resolution, the sales price in the most recent transaction shall be the Base Assessed Value of such property. In the event that real property has not been sold within the past ten (10) years or is sold in other than an arms-length transaction between two unrelated parties, the Base Assessed Value shall be the average sales price of comparable properties sold in the same municipality or ward in arms-length transactions between unrelated parties.
Section 3. Assessed Value for Purposes of Taxation. The fair market value and the assessed value of real property in Allegheny County shall be rebuttably presumed to be the Base Assessed Value as adjusted for inflation (based upon actual historical information regarding inflationary or deflationary trends in Allegheny County).
Section 4. Distressed Communities Exception. Where it is established that the value of real property in a particular geographical area of the County (neighborhood or municipality) has fallen substantially more than county-wide trends, as determined by selling prices in all arms-length real property transactions in that geographical area, the assessments of properties within that area shall be adjusted accordingly.
Section 5. Implementation. Allegheny County shall develop, implement and refine a computer program that, to the highest degree of accuracy possible, uses sales price information to implement the policies established by this Resolution. Such program shall be developed under the supervision of the Property Oversight Board in consultation with the Office of Property Assessment.
SECTION 6. If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
SECTION 7. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.