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Realtors Association fighting Mt. Lebanon newcomer tax

By Suzanne Elliott 2 min read

The Realtors Association of Metropolitan Pittsburgh, an industry advocacy group that counts the majority of residential real agents as its members, is funding a website opposing Mt. Lebanon’s controversial “newcomer tax.”

The website, www.endthenewcomertax.com, went live March 3, and will remain up indefinitely, said John Petrack, RAMP’s executive vice president. RAMP is spending $20,000 on the website and campaign.

“Our job is to protect the consumer,” Petrack said.

The genesis of the tax goes back to 2012, when Allegheny County reassessed homeowners. That, in turn, drew complaints from Mt. Lebanon residents who purchased homes in 2011 and 2012 for more than what the county assessed them for a year later. Both municipal and Mt. Lebanon officials challenged 150 of those properties and won 149.

Mt. Lebanon hired Diversified Municipal Services Inc. last month to represent it in defending and appealing assessed values. With the 2015 appeals program, Diversified will prepare and analyze assessment to sale ratios for all transactions that have occurred in the municipality in the past. Diversified will charge a flat fee of $175 for each appeal attended.

“If you buy a home in Mt. Lebanon, the commission will file an appeal to jack up the taxes,” said Mike Suley, a residential real estate agent and RAMP board member.

He said if a municipality appeals an assessment, the county tends to rule in its favor.

RAMP officials will attend the March 10 meeting municipal meeting to discuss the tax.

Home assessments in Allegheny County are based 2008, 2009, and 2010 sale prices, he said. Other communities, such as Bethel Park and Upper St. Clair, have appealed tax assessments in the past, but those actions have not generated the citizen outcry as it has in Mt. Lebanon, said Suley, who is also a Mt. Lebanon resident.

“It is a question of fairness,” Petrack said. “An individual, or couple, buying a property really don’t know about the policy and can’t make an informed decision. There is no other process.”

Suley said anywhere from 400 to 500 homes are sold in Mt. Lebanon each year.

“It is perfectly legal to cherry pick, but it is poor public policy,” he said. “There is no advance warning. RAMP wants to protect the public.”

Mt. Lebanon Commissioner Kelly Fraasch said she was surprised that RAMP did not ask for meeting before going live with the website.

“But, everybody has the opportunity to speak up,” Fraasch said.

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