Pennsylvania Code
Title 61 - REVENUE
Part III - State Tax Equalization Board
Chapter 603 - MARKET VALUE PROCEDURES
CONVERSION TO AGGREGATE MARKET VALUE
Section 603.51 - Computation procedure
Current through Register Vol. 54, No. 44, November 2, 2024
(a) If the aggregate inventories of taxable real property in terms of assessments by use type of property, and the respective converting assessment-sales ratios is ascertained, the final conversion phase shall be converting aggregate assessments into aggregate market values. The mechanics of this final phase is illustrated by the following hypothetical example:
TAXABLE REAL PROPERTY X SCHOOL DISTRICT 1967
| PropertyType | Aggregate inventory (County Assessed Valuation) (in dollars) | Converting Assessment-Sales Ratio (in percentage) | Aggregate Sales Value (in dollars) |
| Land and Improvements: | |||
| Residential | 10,000,000 | 33 | 30,000,000 |
| Industrial | 1,000,000 | 25 | 4,000,000 |
| Commercial | 5,000,000 | 50 | 10,000,000 |
| Land Only: | |||
| Lots | 200,000 | 20 | 1,000,000 |
| Waste Land | 50,000 | 20 | 250,000 |
| ____________ | ____________ | ||
| Total | 16,250,000 | 45,250,000 | |
(b) It should be noted that in the residential classification in subsection (a), sales indicate on an average, dwellings are assessed at 1/3 of bona fide selling prices. Thus, if the $10,000,00 aggregate residential assessments represent 33 1/3% of aggregate market value, aggregate market value is $30,000,000.
(c) To further guarantee conservatism and realism, the total aggregate sales value in subsection (a) is subjected to a Statewide uniform discount in determining aggregate market value.
