The so-called "windfall" protection for homeowners? Is it real or not? (Pittsburgh: how much, school districts)

[gg]

Anyone ever read this?

2012 Allegheny County Property Tax Reassessment Information | Flaherty Fardo, LLC

[Scott2187]

I found this to be interesting fro that site: Pittsburgh Set to Mail 2012 Assessments 12/19/11 : County to Raise Millage rates to 5.69. | Flaherty Fardo, LLC

Many clients will ask about the alleged 5% cap on increased revenue from a reassessment. Such statements are misleading. What the law states is that taxing entities should not receive more than a 5% increase in total revenue. Most taxing entities are getting around this rule by simply stating that they are expecting loses in other areas (such as less delinquent tax collection) and thus that total revenues are not increasing by more than 5%, even if revenue from property taxes clearly is. As a practical matter, we suspect that most taxing entities will raise millage rates for fear of appeal by property owners

[gg]

This is my favorite!

The reality is that the school districts spend whatever money they bring in and it is very rare for school districts to ever lower their millage rates. In fact, many school districts are arguing for millage increases because they are uncertain of how many appeals are going to be filed and what to make sure they have the revenue in case of successful appeals filed by property owners.

[BrianTH]

Note that law firm is trying to drum up business for itself.

[stburr91]

Originally Posted by h_curtis

This is my favorite!

The reality is that the school districts spend whatever money they bring in and it is very rare for school districts to ever lower their millage rates. In fact, many school districts are arguing for millage increases because they are uncertain of how many appeals are going to be filed and what to make sure they have the revenue in case of successful appeals filed by property owners.

Many school districts did indeed do this last time. I remember that Woodland Hills renovated all of the districts sports fields, and Gateway bought the entire senior class laptop computers.

Originally Posted by BrianTH

Note that law firm is trying to drum up business for itself.

I think you're probably right, but I believe Edgewood was the only local government in the county to adjust their millage after the last reassessment, so there might be something to this. I suspect business is going to be good for these law firms in the next year.

[gg]

Originally Posted by stburr91

...but I believe Edgewood was the only local government in the county to adjust their millage after the last reassessment.

I think the focus of discussion should be on school districts and their taxes. Why? Take a look at the school tax bill compared to all others. Who cares about the tiny county taxes that by the way just raised their millage how much right before this reassessment? Why did Allegheny County pump up their millage rate right before these notices were sent out? WHY???

Now back to the more important school tax situation. If what you say is true that only Edgewood adjusted their millage rates, what does that say about this new reassessment?

[BrianTH]

Originally Posted by stburr91

I think you're probably right, but I believe Edgewood was the only local government in the county to adjust their millage after the last reassessment, so there might be something to this. I suspect business is going to be good for these law firms in the next year.

The anti-windfall laws were changed (and tightened) since then. Nonetheless, as I noted in the other thread, over 90% of the school districts in Allegheny County were in compliance with the anti-windfall law of that time.

[BrianTH]

Originally Posted by h_curtis

Why did Allegheny County pump up their millage rate right before these notices were sent out? WHY???

Because their state and local funding has been slashed and they needed the new property tax revenues to prevent massive cuts in various programs.

[gg]

Originally Posted by BrianTH

Because their state and local funding has been slashed and they needed the new property tax revenues to prevent massive cuts in various programs.

Right ahead of this new reassessment? Interesting timing. Glad you feel the government is still looking out for the little guy. I wish I felt the same way, but it seems only the rich and famous get away with everything and the middle class gets smashed. I expect this to play out this way. It would of course be easier to believe in our big governing bodies, but it is very hard for me to think they will look out after us, considering how things are going from top to bottom in our mighty dictatorship that is in place.

[BrianTH]

Originally Posted by h_curtis

Right ahead of this new reassessment? Interesting timing.

They needed the funding for the upcoming budget year, but it is true they enacted the increase ahead of the reassessment on purpose, because they think that doing it in advance avoids the anti-windfall law, a corollary to which is that this increase will be reduced along with the rest of the rate.

Incidentally, that also means they concluded that they couldn't just directly flout the anti-windfall law.