Please read how tax assessments are changing for Allentown Borough in light of the Assessment Demonstration Program.
UPCOMING PROPERTY REASSESSMENTS
When a Municipality completes a full revaluation of all the properties in that municipality, all property assessments are reset to 100% of their market value at that time. Over time after the revaluation, the real estate market changes and values of properties that are sold may go up or down, but if a municipality is not part of a reassessment program, the assessments for the most part stay the same year after year, so even though the real estate market is reflecting a rise or fall, your assessment on your property will remain the same. Each year, the state releases what is called a Director’s ratio based upon sales of properties as compared to the assessments. This ratio indicates at what percentage properties are being valued as compared to actual market value.
Allentown last conducted a complete Borough wide revaluation in 2011. At that time, all properties were reset to 100% market value. Since then, assessments on properties have only changed if there was a successful appeal, an added assessment, an error correction on a property card or demolition of some kind on the property.
At present, the Director’s ratio for Allentown is 61.46 percent. What this means is that in general, the assessments listed for properties in the Borough are only roughly 61% of what the actual fair market value of that property is.
In the interest of bringing Allentown properties closer to fair market value assessments, starting with the 2026 assessments, properties will gradually be reassessed upwards closer to market value. This will not happen all in one year, but over a period of several years until properties are closer to 100% of their market value and then maintained each year to 100% market value by doing annual reassessments. When you receive your assessment postcard this November, you will see the change in your assessment. The change is not set to 100% market value yet, but is set to roughly 61% of value, which is the Director’s ratio for 2026.
It is certainly understood that this may cause some residents to be concerned about the tax consequence and what an increase in their assessment will be tax wise. Rest assured that taxes will not increase to the degree that assessments will increase. This is due to the fact that when assessments are increased significantly, the tax rate generally drops significantly. Although there are no guarantees on what the tax rate for 2026 will be since it is dependent on budgetary needs submitted by the Borough , Board of Education and the County, history has shown that increase in assessments does cause the tax rate to decrease.
Another key element of the upcoming reassessment of properties is physical property inspections to see that properties are correctly assessed for what they are listed as having. These inspections will take place by an outside company contracted by the Borough. The Company is Realty Data Systems (RDS). For an initial 3-year period, each year a different 33% of the Borough’s properties will have a physical inspection, interior and exterior until 100% of the properties in the Borough have had a physical inspection. After the initial 3 years, the cycle will start over for a five-year program and each year, 20% of the Borough’s properties will have a physical inspection. More details about these inspections will be forthcoming. If you are getting an inspection in any given year, you will be sent a card or letter from RDS ahead of time informing you of the inspections and any information you may need.
Annual reassessments and inspections of properties and bringing assessments closer to market value is the best and most efficient way to ensure the equitable distribution of the tax burden and ensure that everyone is paying their fair share.