A PA property owner receives a LERTA (Local Economic Revitalization Tax Assistance) exemption on a new commercial building. The exemption provides 100% tax abatement on the improvement in year 1, declining by 10% each year. The improvement adds $500,000 to the assessed value, and the total millage rate is 40 mills. What is the tax on the improvement in year 3 of the LERTA period?
Correct Answer
D) $4,000
Year 1: 100% exempt (0% taxable). Year 2: 90% exempt (10% taxable). Year 3: 80% exempt (20% taxable). Tax in year 3: $500,000 × 20% × 40 / 1,000 = $100,000 × 0.04 = $4,000.
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More Pa Property Tax Assessment Appeals Questions
A homeowner in Pennsylvania has a property with an assessed value of $150,000. The county millage rate is 5 mills, the municipal millage rate is 3 mills, and the school district millage rate is 25 mills. What is the homeowner's total annual property tax?
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A PA homeowner discovers that their property is assessed at $250,000 while an identical neighboring property is assessed at $200,000. Under the Pennsylvania Constitution's uniformity clause, what right does the homeowner have?
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A property owner in Delaware County, Pennsylvania, pays total annual property taxes of $6,600. The property's assessed value is $200,000. The combined millage rate for county, municipal, and school district taxes is:
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Previous Question
A PA real estate agent is helping a buyer compare properties in two different counties. County X has a CLR of 80% and County Y has a CLR of 30%. Both properties have a fair market value of $300,000. What does this mean for the properties' assessed values?
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A first-time homebuyer in PA asks their real estate agent whether property taxes can change over time. What is the most accurate response?