A property in Chester County, Pennsylvania, has an assessed value of $200,000. The county's Common Level Ratio (CLR) is 53.4%. A buyer purchases the property for $400,000. The county assessor does NOT reassess the property after the sale. For purposes of an assessment appeal, what is the property's current fair market value as estimated through the CLR?
Correct Answer
C) Approximately $374,532 ($200,000 ÷ 0.534)
The Common Level Ratio (CLR) published by the State Tax Equalization Board (STEB) represents the ratio of assessed values to actual market values in a county. To estimate fair market value from an assessed value, divide the assessed value by the CLR: $200,000 ÷ 0.534 = $374,532. This estimated market value is used in assessment appeal proceedings.
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More Pa Property Tax Assessment Appeals Questions
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