Lancaster County’s
2027 Reassessment:
What’s Happening & Why it Matters for Commercial Real Estate
February 4, 2026
Lancaster County is moving from its current 2018 base year to a 2027 base year as part of its countywide reassessment cycle. The County’s own taxpayer guide explains the goal plainly: reset assessments to 100% of current fair market value so the tax burden is distributed more fairly across properties. In publicly available summaries – as well as an interview from a member of the Board of Assessment Appeals – owners should expect new assessed-value notices around June 2026 for the 2027 tax year.
Typically, the annual assessment appeal deadline is August 1st of every year. However, in a reassessment year, the property owner is given 40 days from the mailing date on the notice to submit an appeal (i.e., interim appeal).
For commercial properties, reassessments tend to surface “hidden” issues – misclassified use, unknown interior condition, or assessments that don’t reflect physical, functional, or economic obsolescence. They also create a short window to get your documentation (leases, rent roll, expenses, appraisal) organized in a way that’s persuasive for an appeal.
​​​A quick history of assessments in Pennsylvania: the “base - year” problem and Uniformity​
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Pennsylvania’s Uniformity Clause requires that taxes be uniform “upon the same class of subjects” within the taxing authority. [1] Comparable properties should be assessed at similar proportions of market value, preventing selective reassessments that unfairly shift tax burdens between owners.
Most counties operate under a base-year assessment system where property values are established during the most recent countywide reassessment and then remain fixed as market values rise and fall over time. Lancaster County, for example, currently uses a 2018 base year, with its next reassessment scheduled for 2027. [2]
The practical consequence is predictable: as markets evolve, properties drift to very different relationships between assessed value and true market value — a phenomenon measured through Common Level Ratios (CLRs) — creating mounting pressure on the constitutional requirement of uniformity.
That tension has driven decades of litigation over Pennsylvania’s assessment system. In Clifton v. Allegheny County (2009), the Pennsylvania Supreme Court held that while base-year assessments are not automatically unconstitutional, allowing them to grow stale can violate the Uniformity Clause by creating widespread inequities — ultimately requiring reassessment. [3] Similar Uniformity challenges continue today as market values drift further from frozen assessment years.
For example, only 3 of the 18 counties presented below have updated assessments in the past decade. Most are still taxing property based on values set 15 -- 60+ years ago.​​​​​
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​In Pennsylvania, the CLR is calculated annually using recent arm’s-length property sales. However, because the overwhelming majority of property sales in most counties are residential, the CLR is largely driven by single-family housing trends — not by commercial or income-producing real estate performance.
This creates a structural issue when residential values are rising while commercial markets are stable or declining. Even if a commercial property has decreased in value, countywide ratio calculations may still indicate higher equalized values driven primarily by residential price growth, which dominates the underlying sales data. Further complicating matters, “commercial real estate” encompasses multiple asset classes; multifamily, industrial, office, retail, and hospitality markets each have their own local supply-and-demand forces and trends.
Quick Math & Example
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The equation that Pennsylvania uses to determine – or equalize – base year assessed value to fair market value (known as “equalized value” or “implied value” for tax assessment purposes is as follows:​​​​​
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This dynamic is best illustrated through a hypothetical. An office property may be assessed at $1,000,000 in the 2027 base year. If office market values decline in 2028, but residential home prices continue rising across the county, the Common Level Ratio may still fall — driven primarily by residential sales activity. A lower CLR increases the “equalized value” applied to all properties, even though the office market has weakened.​​​​​
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​In just one year, the County’s equalized value increases even though the market within that asset class may not have. Now imagine how far equalized values can drift from reality over 10 or 20 years without a reassessment.
The result is built-in inequity across property classes, particularly in counties with strong residential appreciation. Commercial owners may face increased exposure to reverse appeals or miss opportunities to challenge assessments if they assume the CLR reflects commercial market conditions. Because the CLR resets annually, this imbalance should be monitored every year — not just during countywide reassessments.
Why This Matters for Property Owners
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​​​In Pennsylvania, a property owner’s real estate tax liability is ultimately correlated to the property’s equalized value, not just the assessed value shown on the tax bill.
If the County’s equalized value is higher than what the market would support, you may have grounds for an assessment appeal.
Challenging the equalized value (by supporting a lower market value):
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​​Leads to a reduction in assessed value, and
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​​Results in a direct reduction in tax liability
Thinking About Assessment Appeals: Opportunity, Risk, and Timing
Should I appeal?
Is it worth it?
What's the risk?
When do I act?
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​1) Start with value: is there a meaningful gap?
For commercial properties, the core question is whether credible market evidence — properly adjusted within Pennsylvania’s ratio framework — supports a materially lower value than the current equalized assessment.
2) Be realistic about risk
Assessment appeals are not one-directional. Depending on the strength of the evidence, boards can adjust values up or down.
3) Know the local filing mechanics and deadlines in Lancaster
August 1st of every year, or
Within 40 days of a reassessment
Why lowering real estate taxes can increase value for
income - producing property
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​​​Many owners understand this intuitively — but the impact can also be quantified.
Gross or modified-gross leases
When the owner pays all or a portion of real estate taxes, any tax reduction flows directly to the bottom line by increasing Net Operating Income (NOI).
For example:
A $50,000 annual tax reduction at a 10.0% capitalization rate implies approximately $500,000 in value creation.
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​​​Lower expenses
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​​​higher NOI
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​​​higher property value.
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​​​Triple-net (NNN) / tax pass-through scenarios
In properties where tenants reimburse real estate taxes, the value impact is more indirect — but still meaningful.
Lower taxes reduce total occupancy costs for tenants. In competitive leasing markets, this often supports:
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Higher base rents over time,
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Fewer concessions, and
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Stronger tenant retention.
Because base rent is typically more predictable and durable than CAM or tax reimbursements, converting a portion of expense savings into base rent can improve the quality of the income stream. Even if total NOI does not change immediately, improved income stability can support a lower capitalization rate, which in turn increases property value.
How CCAG can help owners and their representatives appeal tax assessments
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​​​Assessment appeals are not “generic appraisals.” They’re evidence-driven, jurisdiction-specific, and they hinge on credibility at a hearing. CCAG supports sophisticated owners and their representatives with targeted analysis and appraisal work designed specifically for tax assessment strategy and appeal forums.
1) Fast feasibility screening (“go / no - go”)
Before anyone spends money pursuing an appeal, we help answer the practical question: Is there a real valuation gap worth fighting for — and is the case defensible?
We can review:
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Property record data, building measurements, use, and key physical characteristics (to identify material discrepancies)
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Rent roll, lease structure, and operating history (to understand how the property actually performs)
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Market context and known local assessment tendencies (to set realistic expectations)
Deliverable: a clear recommendation on whether an appeal is likely to be worth the effort, including key strengths, risks, and next steps.
2) Evidence built for assessment boards
If the case is viable, we prepare analysis and appraisal work geared toward how boards and taxing districts evaluate evidence — not how a bank reviewer reads a report.
Our work commonly includes:
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Income approach grounded in market reality: clear presentation of market rent vs. contract rent and impact on vacancy and absorption, lease structure (NNN vs. modified gross), and TI/LC and concessions where applicable
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Sales support tailored to the jurisdiction: sale selection and adjustments that anticipate assessor and taxing-district rebuttals (including the reality that many boards heavily weigh county sales)
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Clear reconciliation narrative for hearings: concise logic that a hearing officer can follow — not just technical appraisal language
3) Credible support through the hearing process
We understand that the “win” is not just the number — it’s the persuasion and defensibility of the valuation logic under scrutiny.
What owners and counsel get from CCAG:
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A team led by MAI designated appraisers [4]
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Real-world experience across property types and lease structures
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Practical market perspective that resonates with boards and assessors
Conclusion
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​​​Lancaster County’s 2027 reassessment will significantly impact commercial property owners. Because Pennsylvania’s base-year system and CLR are driven largely by residential sales, commercial assessments don’t always reflect commercial market conditions — creating both opportunity and risk. What matters is how a property’s equalized value compares to true market value through income and sales analysis. Owners who act early, understand appeal deadlines, and work with qualified attorneys and appraisers can often reduce tax burdens and protect long-term value.
[1] https://www.palegis.us/statutes/consolidated/view-statute?chpt=8&div=0&ttl=00&txtType=HTM
[2] https://co.lancaster.pa.us/DocumentCenter/View/17033/Taxpayers-Guide-to-the-2027-Reassessment-
[3] https://caselaw.findlaw.com/court/pa-supreme-court/1120284.html​
[4] https://www.appraisalinstitute.org/why-join/pursue-a-designation
​Michael J. Rohm, MAI, CCIM, R/W-AC, is a fee appraiser and real estate agent working throughout Pennsylvania.
He is the Founder and a Partner at Commonwealth Commercial Appraisal Group and is Director of Valuation Advisory
and Senior Associate with Landmark Commercial Realty.
mrohm@commonwealthappraiser.com
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Brendan Wewer, MAI is a commercial real estate appraiser working throughout Pennsylvania, Delaware, New Jersey, and Maryland.
He is a Partner at Commonwealth Commercial Appraisal Group.
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