20
Sep 2019
Philadelphia Realty Transfer Tax
Determining Philadelphia Realty Transfer Tax When Sales Price is Below The Assessed Fair Market Value
By admin

How does one value property for the purposes of determining realty transfer tax in Philadelphia when consideration for the property is nominal or less than fair market value as set by the Office of Property Assessment (OPA)?

When the consideration is below the assessed market value, the property’s value for the purpose of determining realty transfer tax is the computed value per the following OPA formula:

  • Computed value = OPA value per https://property.phila.gov/ multiplied by the common level ratio factor for Philadelphia County, which as of 07/31/19 is 1.01.

(Please note the common level ratio factor changes over time.)

What about for properties outside of Philadelphia County?

The same principle holds. 

Pennsylvania law states that where a property is transferred for less than fair market value, realty transfer tax is assessed according to the property’s assessment value multiplied by the common level ratio factor for the country in which the property is located. 

Questions about Pennsylvania Title Insurance or Need a PA Title Company?

If you have any questions regarding this matter, have questions about Pennsylvania Title Insurance or are in need of a Pennsylvania attorney or PA Title Company, please reach out to us today. We are happy to offer you our guidance.

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