Property Tax Alert–Pennsylvania

December 2004

Property tax assessments that were based on appraisals that speculated on the highest and best use of the properties due to a potential zoning change were improper. The properties were zoned agricultural, but the appraisals concluded that the highest and best use of the properties was commercial because a demand for commercial property existed in the area. However, the property owner had not applied for a variance or a zoning change, so the possibility that the properties might be rezoned was pure speculation. Therefore, the possibility of rezoning should not have been considered in the assessments.

Please contact Rash & Associates for more information.