What methodology did I use to create the calculator?
Delaware County has reassessed each tax parcel to bring its assessment value up to 100% current market value. I was curious about the impact on my taxes and created this calculator. The methodology and calculations are explained below. I hope you find it useful.
NOTE: Assessed Value is the ONLY part of the equation that can be appealed. Any possible tax increase is not a valid basis for appeal. If your Assessed Value is greater then the amount you can sell your house for, APPEAL.
Basic Methodology:
The new tax is calculated by using the CLR for each taxing authority (county, school district, & municipality) and applying them to current 2020 tax rates along with your new 100% market value assessment as determined by the County in your re-assessment notice provided by you.
New construction, increase in tax revenue, local fees, and the homestead exemption are NOT part of the calculation.
The STEB and/or CLR being used to estimate the current fair market value properties may not properly reflect the actual current fair market value of all properties once the assessment is completed. Such a difference could result in material differences in the overall calculations.
County CLR * County Tax Rate * New Assessed Value = New County Tax
School District CLR * SD Tax Rate * New Assessed Value = New SD Tax
Municipal CLR * Municipal Tax Rate * New Assessed Value = New Municipal Tax
New County Tax + New SD Tax + New Municipal Tax = TOTAL NEW TAX
NEW TAX - OLD TAX = CHANGE IN TAX
What is a CLR?
The CLR is the Common Level Ratio defined as the ratio that measures how a county's Base Year Assessments compare with current Real Estate Market Valuations. The current ratio is based on the 2018 data. The CLR for Delaware County is 56.4% for residential homes and 58.1% for commercial properties. If you want to learn more about the computation of this ratio go HERE.
Since each school district and municipality have a different mix of properties the STEB also provides the CLR for each School District and Municipality.
For example, the CLR for the County is 56.4%, but the CLR for Garnet Valley School District (GVSD) is 68.27%, and the CLR for Chester Heights Borough (CHB) is 68.68%.
This means that:
The total assessment for the county of $31.8B should be valued at $56.4B. (31.8B/56.4%) to bring it to 100% of market value.
The total Assessment for GVSD of $2.65B Should be valued at $3.88B (2.65B/68.27%) to bring it to 100% of market value.
The total Assessment for CHB of $215.7M should be valued at $314M (215.7M/68.68%) to bring it to 100% of market value.
If each taxing unit brings their assessment values up to 100% in the same proportion as indicated by the CLR the tax rates would also change by the same percentage.
NOTE ON REVENUE NEUTRAL:
Since the tax assessment must be revenue neutral I am projecting 0% tax revenue increases in the calculations on all taxing authorities (county, school district, municipality).
For the COUNTY:
If the assessed value for the county as a whole is undervalued at 56.4%, then the 100% market value of the county will be $56.4B. The total revenue required for 2020 is 165.5M.
$56.4B / $165.5M*1000 = 2.93 mills
This would make the new tax rate 2.93 mills, however, the county adds 5% to the millage rate due to delinquency so it would be 3.08 mills (2.93*105%).
OR
The current rate (5.461mills)*56.4%= 3.08 mills
This is how I calculated the rates used in the calculator for "NEW" County taxes.
For the SCHOOL DISTRICT (Ex. GVSD):
If the assessed value for GVSD as a whole is undervalued at 68.27%, then the 100% market value of the school district will be $3.88B. The total revenue required for 2020 is $89.9M.
$3.88B / $89.9M*1000 = 23.164 mills
OR
The current rate (33.93 mills)*68.27%= 23.164 mills
This is how I calculated the rates used in the calculator for "NEW" School District taxes.
You can choose your school district to apply your EXACT CLR.
For the MUNICIPALITY (Ex. Chester Heights)
If the assessed value for CHB as a whole is undervalued at 68.68%, then the 100% market value of the municipality will be $314M. The total revenue required for 2020 is 183K.
$314M / $183K*1000 = .58 mills
OR
The current rate (.85mills) * 68.68% = .58 mills
This is how I calculated the rates used in the calculator for "NEW" Municipal taxes.
You can choose your school district to apply your EXACT CLR.
IF you do not select a municipality and school district for the CLR the calculator will base your calculations on 56.4% or the County CLR.
For more information about the re-assessment visit the Delaware County Website.