Allegheny County-- seems they are raising taxes again. (Pittsburgh: calculated, property tax)

[tranceFusion]

I don't understand why everyone is blasting h_curtis.

My understanding from prior posts on this board is that the millage rate would go down since our house assesments went up, to remain in compliance with the windfall law.

The article states "Raising taxes for 2013 by as much as another mill."

The definition of a mill: "The amount per $1,000 that is used to calculate taxes on property. Millage rates are most often found in personal property taxes, where the expressed millage rate is multiplied by the total taxable value of the property to arrive at the property taxes due. The term is derived from the root word mill, which means "thousand". Millage rates are often expressed mathematically with the symbol %o, as in 1%o, which is one part per thousand, or 0.1% "

So, assuming we applied the current millage rate to the re-assessed value, the county will be taking 35% more income (the avg county-wide increase in property value), in violation of the windfall law. But they aren't talking about using the current millage rate, they are talking about increasing it.

How is h_curtis wrong?

[Lobick]

Originally Posted by tranceFusion

I don't understand why everyone is blasting h_curtis.

My understanding from prior posts on this board is that the millage rate would go down since our house assesments went up, to remain in compliance with the windfall law.

The article states "Raising taxes for 2013 by as much as another mill."

The definition of a mill: "The amount per $1,000 that is used to calculate taxes on property. Millage rates are most often found in personal property taxes, where the expressed millage rate is multiplied by the total taxable value of the property to arrive at the property taxes due. The term is derived from the root word mill, which means "thousand". Millage rates are often expressed mathematically with the symbol %o, as in 1%o, which is one part per thousand, or 0.1% "

So, assuming we applied the current millage rate to the re-assessed value, the county will be taking 35% more income (the avg county-wide increase in property value), in violation of the windfall law. But they aren't talking about using the current millage rate, they are talking about increasing it.

How is h_curtis wrong?

It's algebra. The County is facing a new deficit based largely on a State funding shortfall. It order to fill the deficit (X) they have to raise that amount of revenue. It make no difference what the assessed values of all the property in Allegheny County (A) is, the increase in the millage rate (M) can be adjusted by whatever is necessary (in a non-assessment year) to solve for X.

X = A * M

People are blasting Curtis because this has been explained to him many times. The Anti-windfall protections were never applicable except in a reassessment year and local governments could always raise millage rates by whatever amount that the wanted...still can.

[gg]

Originally Posted by tranceFusion

I don't understand why everyone is blasting h_curtis.

I guess I don't blame them. I have lobick on ignore, so I have no idea what he is stating, but it is simple logic. If millage rates climb so does your taxes. If you are reassessed at a higher rate your are effected more per each millage increase. They might try and say, oh it doesn't matter because they will adjust the millage rate down when they reassess. Down to what? Down to what they used to be?

I don't think people like these kind of posts because it brings the nasty tax problem to light. People interested in moving here read the tax issues and they really are in shock. It happened all the time when I sold real estate. People couldn't believe the taxes. That was a long time ago. Wait till they have a look at them 5 years from now.

[UKyank]

Love how the chair of the 'budget & finance committee' can list 5 bullet points of how to raise additional revenue from the residents but 0 ways to cut anything out of the budget.

[tranceFusion]

Originally Posted by Lobick

It's algebra. The County is facing a new deficit based largely on a State funding shortfall. It order to fill the deficit (X) they have to raise that amount of revenue. It make no difference what the assessed values of all the property in Allegheny County (A) is, the increase in the millage rate (M) can be adjusted by whatever is necessary (in a non-assessment year) to solve for X.

X = A * M

But the bottom line is that the taxes are going up, and fast. How is h_curtis reporting that make his post "inaccuracte" as ML_North stated?

Everyone has been trying to calm fears over the re-assessment by stating the millage will be reduced, but its actually heading the opposite direction.

[gg]

Originally Posted by tranceFusion

How is h_curtis wrong?

I am correct in the long run. In the short term, the windfall law will protect us for one year, but lets face it, Allegheny County is going to raise taxes until it hurts more and more. You can't blame people living over the boarders. They have it made as far as taxes are concerned.

[Lobick]

Originally Posted by UKyank

Love how the chair of the 'budget & finance committee' can list 5 bullet points of how to raise additional revenue from the residents but 0 ways to cut anything out of the budget.

If I'm not mistaken the last millage rate increase was deemed more politically popular than the cuts that would have been necessary had it not been done. I've not observed a ton of political blow-back to the increase...perhaps it's there and I just missed it.

I suspect that a similar calculus is being performed now that cuts to COunty services would be less popular than an additional millage increase and the politicians are acting accordingly. Of course there's a "scare tactic" element I'm sure, in hopes of ameliorating some of the State cuts.

[Lobick]

Originally Posted by tranceFusion

But the bottom line is that the taxes are going up, and fast. How is h_curtis reporting that make his post "inaccuracte" as ML_North stated?

Everyone has been trying to calm fears over the re-assessment by stating the millage will be reduced, but its actually heading the opposite direction.

Any tax increase has absolutely nothing to do with the reassesment, that's the inaccuracy. I'm sorry if you can't see that.

[Lobick]

Originally Posted by h_curtis

You can't blame people living over the boarders.

I guess he's now considering renting out his basement to raise additional revenue. I hope his home in FC is zoned properly for that.

[gg]

Originally Posted by UKyank

Love how the chair of the 'budget & finance committee' can list 5 bullet points of how to raise additional revenue from the residents but 0 ways to cut anything out of the budget.

Correct. Seems we love to spend and increase and hate looking at ways of reducing spending. Sure isn't a very good solution. It sure hurts growth and kills appreciation of homes in our region. Ah well.