The article “$7 million estate offers old-world luxury in Fox Chapel” (July 12, TribLive) is similar to other news reports that give free marketing to home sellers while clearly demonstrating a property tax system that is archaic and fraught with inequities.
A review of the Allegheny County Assessment Department lists the current assessed value at $2,450,000, though it sold April 6, 2023, for $6,350,175! If my math is correct and the house sells for the listing price of $7,000,000, that would be a 185.7% increase. So is the property currently underassessed, or is the asking price out of line?
Using the 2024 Common Level Ratio of 54.4%, this method will still mask the actual value based on the $7 million sales price and would be reassessed for $3,808,000, or a 55.4286% increase in assessed value.
Take the current taxes of $69,000 and increase that by 55.4286%; the new annual taxes would be $107,245.73, or $8,937 a month.
On Jan. 31, I removed myself from the tax burdens. For a comparably priced home, I reduced my taxes from $475 to just $69 per month. The trade-off is an 8% sales tax and higher homeowners insurance, which still leaves me with a net savings of $300 per month. This tax method nearly eliminates the issue of property assessments since the three branches of government (county, municipal, school) are primarily funded with the sales tax.
Gary J. English
Little River, S.C.