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Pippy Unveils Bill to Protect Taxpayers
HARRISBURG -- With
plans to reform of Allegheny County’s reassessment process bogged down once
again, Senator John Pippy (R-37) and Rep. Mark Mustio (R-44) today unveiled
legislation to protect taxpayers from being hit with extreme tax hikes following
countywide reassessment.
The measure requires that
following reassessment municipalities and school districts determine millage
rates that are revenue-neutral compared to the previous year. To set a tax rate
higher than the revenue-neutral rate, they would have to take a separate and
specific vote in a public meeting.
A municipality or school
district that violates the limitations would have to refund with interest the
excess taxes paid by homeowners.
“This legislation protects
taxpayers from extreme tax increases, and ensures that any tax hike that
increases revenue following reassessment is done only after public deliberation
and a vote,” said Pippy. “It helps prevent huge jumps in tax bills that can
tear apart a family budget, while providing municipalities and school districts
with the latitude to cover legitimate expenses and emergencies.”
“We have introduced this
‘zero tolerance’ legislation to force school districts, municipalities and
Allegheny County to roll back their millage rates to the average increase for
their respective jurisdictions,” said Mustio. “While it does not completely
prohibit local government officials from subsequently increasing taxes, it would
give taxpayers some extra breathing room until comprehensive and effective
school property tax reform is enacted at the state level.”
The Second Class County Code
permits a taxing body to institute a final tax rate up to five percent greater
than the amount it levied on properties the year before. Under the proposed
legislation, in cases of dire need -- to purchase new equipment related to
public health and safety, for example -- a political subdivision may petition
the court for approval to increase the millage rate beyond the five percent that
was approved via public vote.
Calculating a
“revenue-neutral” millage rate would exclude new construction and improvements
to existing buildings.
Common Pleas Court ruled May
12 that Allegheny County Chief Executive Dan Onorato’s property assessments plan
is illegal and would create more problems for the system.
“Property owners in
Allegheny County are still reeling over the last reassessment, with no relief in
sight,” said Pippy. “The problem has generated many proposals and speeches.
This legislation has an advantage over many of the other solutions in that it’s
both legal and doable.”
“For the sake of the local
economy and improving the overall quality of life in Allegheny County, our
working families and senior citizens deserve the immediate relief that this
legislation can provide,” said Mustio. “The real and irrevocable risk is doing
nothing or continuing to preserve the status quo while more and more property
owners are forced out of their homes due to property tax bills they can no
longer afford to pay.”
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