Property Valuation
In Pennsylvania, what is the 'assessed value ratio' (CLR) and how does it affect property tax appeals?
AThe ratio of the sale price to the listing price used to evaluate market competition
BThe Common Level Ratio, the ratio of assessed values to market values established annually by the State Tax Equalization Board, used to ensure uniform taxation✓ Correct
CThe ratio of commercial to residential assessments in a county
DThe ratio of property tax to income used to qualify for tax relief programs
Explanation
Pennsylvania's Common Level Ratio (CLR) is established annually by the State Tax Equalization Board for each county. It represents the ratio of assessed values to market values in the county. Taxpayers appealing assessments may use the CLR to calculate their 'indicated assessed value' (market value × CLR). If their current assessment exceeds this amount, they may be entitled to a reduction. The CLR is a critical tool in Pennsylvania property tax assessment appeals.
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