The Great Allegheny County Assessment Paradox
Washington Plaza Downtown is being put up for sale with an asking price of $55 million.
Note that its current base year assessment: $23 million.
Its new 2012 assessment: $30 million.
I have no idea, but I bet they are appealing nonetheless. Sure, they are asking for more than they will likely get... but are they going to get half of what they are asking. And have we fixed the transfer tax problem here in Allegheny County?
Note from the story the current ownership of the building... the Detroit public pension system. Maybe they will make up what they lost on their casino investment here?
Note also the view from the window. Circa May 1, 1964. Alcoa would own the building until 1973. Everything in town is connected.
My mind wanders. So if the building's assessment went from 23 to 30 million, it is highly likely that the property tax bill on the property is going down. If so it leads to a simple and unavoidable conclusion. A lower tax bill ought to be capitalized into the value of the building. In other words, a lower tax bill should push up the value of the building. Detroit's public pension system is thus going to benefit from Allegheny County's assessment.