What is a Statement of Value and why do you need one?
If you are thinking about buying or selling property in Pennsylvania, you should take some time to learn about the possible taxes that may arise as well as other property law issues. In Pennsylvania, a person that transfers property must pay tax based upon the value of the property. This tax ranges from 2 to 5 percent depending upon the municipality in which the property is located.
Normally, the sales price of a piece of property constitutes the value by which the property is taxed. The tax owed on a property transfer becomes much more complicated when the full value of the property is not listed on the deed for any number of reasons. In these cases, tax might still be due on the property based upon the assessed value of the property and the state requires that a Statement of Value form be filed with the deed. This form is a simple way in which the Commonwealth can assess the actual value of your property and if your transaction is exempt from the payment of transfer tax.
If you are thinking about transferring property in Pennsylvanian and are unsure about the potential tax implications, call our law office for free consultation with an experienced property law attorney.