• Legal Reversal in PA

    A three-judge appeals court in Pennsylvania ruled that the presence of billboards can be considered in determining market value for purposes of real estate tax assessment.

    The appeals ruling in Pennsylvania, entered December 27, 2018, reversed a trial court that said the opposite (April 27, 2017).

    The case involved schools districts in Delaware County, PA.  Here is the heart of the three-judge appeals court outcome, quoting from the decision:

    “We agree that an appraiser must not indirectly value an existing billboard on a property by, for example, considering the revenue generated from the number of advertisements that are placed on that billboard in a given year. However, in this appeal we are only called upon to address the question of whether the revenue that a property owner receives pursuant to a lease or easement for the purpose of erecting a billboard may be considered in a fair market value property assessment. Thus, we conclude only that a property’s suitability to a billboard use and income earned by the property owner from the rental of the property to a billboard operator are not excluded from a fair market valuation. . .”

    You can read the ruling here.  Further appeal is likely.

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