County Council Approves 1 Mill Tax Rate Increase (Pittsburgh, Wilkinsburg: taxi, property taxes)

[UKyank]

Originally Posted by Lobick

I believe that since the County and your school district are two distinct taxing entities, the behavior of one has no effect on the taxing ability of the other.

As far as the anti-windfall provisions, the overall impact on millage rates won't be known until we know the new, cumulative assessed value for all of the real estate within the County. You won't be able to figure out any specific hypothetical until we know what the overall value is and thus what the millage rates will be compelled to be set at.

I'd just like to add that it would have made much more sense to look at the new assessments, see how much new revenue they are bringing & then decide if a millage increase is necessary.

[Lobick]

Originally Posted by UKyank

I'd just like to add that it would have made much more sense to look at the new assessments, see how much new revenue they are bringing & then decide if a millage increase is necessary.

I believe though they by increasing the millage rate when they did, they locked in the new revenue as part of the new baseline which any post-assessment millage changes will be made to.

In other words, I think the revenue generated by the 5.69 mills is the new baseline now and they're assured of getting it without having to deal with the unknowns of the new assessments..

[gg]

I see nothing below that states anything regarding school districts. Also, remember that if you personally are under assessed by a lot and it turns out your area isn't out of whack all that much, you could have a massive tax increase. Then the burden will be on you to prove otherwise. It is a scary proposition. My personal home looks pretty big from the outside, but is small. That concerns me.

§ 1.2-203. Real Estate Tax Revenue Limitations; Anti-Windfall Provisions.

a) The County shall not derive windfall benefits from annual property reassessments or from changes in the predetermined ratio. Following any annual reassessment or change in the predetermined ratio, the total amount of real estate tax revenue that can be received by reason of the reassessment or change in the ratio by the County from existing land, buildings and structures shall not exceed 105 percent of the total amount of real estate tax revenue received by the County in the preceding year from that land, and those buildings and structures. If necessary, the County shall reduce the real estate tax rate to accomplish this.

b) In calculating the 105 percent limit, the amount to be levied on newly constructed buildings or structures, or from increased valuations based on new improvements made to existing buildings and structures, shall not be considered.

[gg]

Originally Posted by Lobick

In other words, I think the revenue generated by the 5.69 mills is the new baseline now and they're assured of getting it without having to deal with the unknowns of the new assessments..

There has to be something going on for them to raise the millage rate right before the reassessment. What is going on there?

I can't help but be concerned over all this. What a horrible time of year to get such a notice in the mail. Can't wait to open that. Happy holidays to those of us not renting.

[CaptainPittsburgh]

Originally Posted by h_curtis

I see nothing below that states anything regarding school districts. Also, remember that if you personally are under assessed by a lot and it turns out your area isn't out of whack all that much, you could have a massive tax increase. Then the burden will be on you to prove otherwise. It is a scary proposition. My personal home looks pretty big from the outside, but is small. That concerns me.

§ 1.2-203. Real Estate Tax Revenue Limitations; Anti-Windfall Provisions.

a) The County shall not derive windfall benefits from annual property reassessments or from changes in the predetermined ratio. Following any annual reassessment or change in the predetermined ratio, the total amount of real estate tax revenue that can be received by reason of the reassessment or change in the ratio by the County from existing land, buildings and structures shall not exceed 105 percent of the total amount of real estate tax revenue received by the County in the preceding year from that land, and those buildings and structures. If necessary, the County shall reduce the real estate tax rate to accomplish this.

b) In calculating the 105 percent limit, the amount to be levied on newly constructed buildings or structures, or from increased valuations based on new improvements made to existing buildings and structures, shall not be considered.

Doesn't the Tax Payer Relief Act extend the anti-windfall to school districts? I might be wrong...

Here's a link that speaks to it:

http://www.lgc.state.pa.us/deskbook0...nt_Process.pdf

Page 147:

In 2006, the Taxpayer Relief Act (Special Session Act 1)37 was enacted. Act 1 contains a new anti-windfall
provision which applies school districts. Section 327 directs that after a countywide reassessment,38
a school district which, after July 1, 2006, for the first time levies its real estate taxes on that revised assessment
or valuation must reduce its millage rate so that the total amount of taxes levied on the properties
subsequent to the reassessment increases “less than or equal to the index for the preceding year.” Section
327 does not require the “two-step” process that exists in the current assessment laws.

As a result of the passage of Act 1, two standards now exist for implementing the anti-windfall procedures
following a countywide reassessment: one for school districts and one for counties and municipalities.

[CaptainPittsburgh]

Originally Posted by h_curtis

There has to be something going on for them to raise the millage rate right before the reassessment. What is going on there?

Haha, this is the exact thought that entered my mind when I read the article.

[gg]

Originally Posted by CaptainPittsburgh

Doesn't the Tax Payer Relief Act extend the anti-windfall to school districts? I might be wrong...

Here's a link that speaks to it:

http://www.lgc.state.pa.us/deskbook0...nt_Process.pdf

Nice find Captain. I see it does extend to school districts, since '06. That is a little protection for the masses, since it is by far the largest bill we all pay and will have to continually be raised yearly for lack of future planning by school board rubber stamp mentality.

Anyway, nice find and it seems there might be some balance. I have great concern of course, but who wouldn't that owns a home? Some might have taxes double. Hard to say.

[Lobick]

Originally Posted by h_curtis

There has to be something going on for them to raise the millage rate right before the reassessment. What is going on there?

I can't help but be concerned over all this. What a horrible time of year to get such a notice in the mail. Can't wait to open that. Happy holidays to those of us not renting.

As I said, all this means is that they're assured of the same revenue they would have received under the current assessed values utilizing the new 5.69 mill rate.

With regard to your personal assessment, chances are the value of your home went up (maybe only a little since you repeatedly speak of how dogged FC is with regard to challenges), but we don't know yet. Presumably, the sum total of all the real estate in Allegheny County has increased since 2001 as well. The question is, which has increased by a greater percentage? That's the pertinent question with regard to Allegheny County taxes.

Ask yourself the same two questions as to FC. That will determine your personal impact with regard to local and SD taxes.

If the reassessment represent a tax increase, it will be at most a 5% across the board increase by each entity, based upon the anti-windfall provisions. It's much more accurate to look at the reassessment as representing a tax redistribution.

[gg]

Originally Posted by Lobick

If the reassessment represent a tax increase, it will be at most a 5% across the board increase by each entity, based upon the anti-windfall provisions. It's much more accurate to look at the reassessment as representing a tax redistribution.

You lost me here. I was under the impression that it would be an average of 5% which would include all entities. In other words it is possible for my taxes to double and my neighbor's taxes to only go up 1%.

I have been to court twice for my home. Been to court once for a rental and twice for a couple of other buildings I used to own. I have won every time and compromised the last time with the school district and their very hungry attorney team that rivals OJ Simpson's bunch except for real estate. Anyway, I do believe some people will have their taxes double. I am correct in thinking that, yes?

[Lobick]

Originally Posted by h_curtis

You lost me here. I was under the impression that it would be an average of 5% which would include all entities. In other words it is possible for my taxes to double and my neighbor's taxes to only go up 1%.

I have been to court twice for my home. Been to court once for a rental and twice for a couple of other buildings I used to own. I have won every time and compromised the last time with the school district and their very hungry attorney team that rivals OJ Simpson's bunch except for real estate. Anyway, I do believe some people will have their taxes double. I am correct in thinking that, yes?

Theoretically, it will be possible for for your taxes to go up more than your neighbors' (although I doubt double). What that would mean is that you've been severely undertaxed over the last ten years in comparision with your neighbor.

I think that each entity is subject to the anti-windfall provision, individually. So, for example, Allegheny County cannot collect more that 105% of the taxes (in dollars) than they collected the year before. Same would apply to your school district and municipality. So, for example, say Fox Chapel SD collected $20 million this year, prior to the reassessment, they wouldn't be allowed to collect more than $21 million next year (105%), even is the total value of all of the real estate in Fox Chapel was reassessed at double what it was in 2001, so the millage rates would have to drop. Both you and your neighbors new assessed values (theoretically similar in this hypo) would be subject to the new SD millage rate.

There are so many unknowns still that it's very difficult to get an idea as to personal impacts yet.

Theoretically, you could be in line for a big increase if you believe that your home has been under assessed for the last 10 years in relation to the other property in your community.