On Feb. 7, Philadelphia Court of Common Pleas Judge Gene D. Cohen issued a decision in a case of first impression related to a Philadelphia taxpayer’s property assessment appeal. Cohen ordered that the land value of plaintiff Ruokai Chen’s property be reduced from $113,150 to $79,000 for tax year 2017 and $82,000 for tax year 2018. While the decision may read like a moderate dollar figure adjustment to the value of one homeowner’s property, the implications of Cohen’s decision could lend weight to thousands of Philadelphia taxpayers’ property assessment appeals.

In Philadelphia, a property’s assessed value is determined by combining the value of the land with the value of the improvements (i.e., the building). The city uses the assessed values of property to determine the amount of real estate taxes a property owner must pay in connection with such property. Unless a property owner enjoys the benefit of an exemption or an abatement, the owner is taxed on the combined value of the land and improvements, known as the property’s market value.