• Extends the tax credit to agreements signed by April 30, 2010 and settled by June 30, 2010.
• Extends all requirements of the $8,000 tax credit of 2009. 
• Includes up to 10% of the sales price of the property up to $8,000. 
• Persons can not have been a homeowner for the last 3 years.
• Can apply it to taxes for 2009 or 2010.
•  Is a tax credit as opposed to a tax write off.
• Income eligibility which has been increased as of December 1 from $75,000 to $125,000 and for a couple $150,000 to$225,000  There is partial payment up to $145,000 for an individual and $245,000 for a couple.

$6500 Tax Credit for Home Owners:

• Provides 10% of the purchase price up to $6500.
• Is a tax credit as opposed to a tax write off.
• Can be applied to 2009 or 2010 taxes.
• Has income limits of $125,000 for one owner and $250,000 for multiple owners.
• There is partial payment for income up to $145,000 for an individual and $245,000 for a couple.
• Total purchase price must be under $800,000.
• Persons eligible must have owned and lived in a home as a principle residence for 5 consecutive years of the last 8.
• Agreement of sale must be signed by both parties by April 30, 2010 and must settle by June 30, 2010.
• This tax credit goes into effect for any person having a settlement on or after the day the President signed the bill which is November 6, 2009.

A new attribute of both of the tax credits is that any veteran who has been deployed outside of the United States for 90 days or more between January 1, 2009 and June 30, 2010 has an automatic one year extension.  For either program the purchase must be made prior to April 30, 2011 and settled by June 30, 2011.

Tax Credit Advance

This is a Pennsylvania program and all loans using this must go through PHFA.  We should not be guaranteeing this to our clients until all documents are into the lender and it is guaranteed by PHFA and the funds are reserved. 

1^st Time Home Buyer:

• $5000 upfront to purchase a home
• $6000 upfront if its new construction
• Persons will still be able to get the entire $8000 or 10% of the sales price whichever is less however they are expected to pay back the $5000 or $6000 upfront monies.  If they do not pay it back the advanced amount will be transformed into a 10 year loan at the same interest rate of the loan that they received.  Persons may choose this alternative.

Home Buyers:

• $3000 upfront to purchase a home
• $4000 upfront if its new construction
• Persons will still get the entire $6500 or 10% of the price of the property and if they don’t pay back the advance it will be transformed into a 10 year loan payable at the same interest rate as the original loan.  Again persons may choose that alternative.

The Berks County Board of Assessment Appeals announces as of June 1, that the Regular appeal period is now open. Regular appeals can be filed each year from July 1 to August 15. Results of the appeal are effective for the following tax year.

The following information will clarify the assessment and appeal process.

The Berks County Assessment Office places assessments on all property located within the County. At the time an assessment is placed on a property, it represents the current market value.

The County, municipalities and school districts calculate their tax millage rate using the total taxable assessed value of all property within the taxing district.

Assessment X Millage Rate = Taxes

The Assessment Office does not set the tax rate.

In order to equalize assessments within the county, a Common Level Ratio (CLR), determined by the State Tax Equalization Board (STEB), is applied to the proven current market value of a property upon a successful appeal to the Berks County Board of Assessment Appeals. This ratio is calculated yearly to reflect current market trends.

Pennsylvania law requires that the common level ratio be applied only by the Board of Assessment Appeals and the Court of Common Pleas to the proven current market value to equalize assessments when appealed. The common level ratio can be found at www.steb.state.pa.us/.

Current market value can be proven by the following:

• A current appraisal within the past 6 months by a certified appraiser;
• Documented recent sales of at least 3 similar properties sold within the last 6 months. These sales are shown by realtor sales sheets;
• The complete settlement sheet and the builder’s contract are required for newly built homes purchased within the past 12 months.
• Multi-unit (4 or more) apartments, the income and expense data is required.

Printouts which note sales compiled from the STEB report for similarly sold properties. Sales information can be researched and assessment records of selected comparable properties may be purchased in the Assessment Office at the Berks County Services Center.
If you can demonstrate that your assessed value is greater than the current market value multiplied by the CLR you may be eligible for a reduction.

Current Market Value X Common Level Ratio = Assessment

An appeal form, instructions and additional information, including Frequently Asked Questions can be obtained at our website or at the Berks County Assessment Office located at the Berks County Services Center, 633 Court Street, Third Floor, Reading, PA 19601. The telephone number is 610-478-6262.