Washington County municipalities, school districts getting preliminary figures for tax purposes
The $6.9 million project that was the Washington County reassessment, in progress since 2013, is drawing to a close and, for the first time, the county has released preliminary figures, community by community, that will give property owners some idea of what could be happening to their tax bills next year.
This is uncharted territory for many property and business owners because there has been no countywide reassessment since 1981.
The numbers the county released Thursday show the old property values from 35 years ago and the new values from July 1, 2015. Dividing the old value into the new value produces a quotient that the county has labeled a “factor.”
For example, the total value of 121,000 properties in Washington County divided using this formula results in a factor of 10.53.
The county has calculated some communities’ properties were collectively underassessed in the past, so those residents will be paying a slightly higher share of countywide taxes.
If a community’s factor is below 10.53, it means the community’s properties were collectively overassessed in the past, so this set of residents will be paying a slightly lower share of countywide taxes.
County solicitor J. Lynn DeHaven stressed the numbers he made available apply to entire communities, not to individual property owners.
And he emphasized the numbers he was releasing came out before the period of formal appeals, beginning Aug. 10 and lasting through Oct. 31, takes place. The lowering of individual assessments will have an impact on property values communitywide, countywide and school districtwide.
Washington County does not plan to raise taxes, so that the county will remain “revenue neutral.” A preliminary calculation lowers the current millage of 24.9 to 2.26. Again, this is a preliminary figure because the impact of assessment appeals is unknown at this time.
County officials have sensed a general perception that residents expect their taxes to increase because of the reassessment.
“It’s not to raise taxes, it’s to equalize taxes,” said Scott Fergus, Washington County director of administration.
For example, two communities – Donora and Peters Township – appear to have been paying more than their share of county taxes. Donora, which according to Zillow.com has a median home price of $51,900, has fallen on hard times since the decline of the steel industry in the Mon Valley. Its factor is 8.11. Nearby North Charleroi has a median home price of $56,100 and a factor of 8.03.
Peters, an upscale bedroom community, according to the same source, has a median home price of $363,900. It was likely overassessed because so much of its home construction has occurred since the 1981 reassessment. Its factor is 8.97.
An unusual community in the list provided by the county is the McDonald Annex, which is part of the borough and the Fort Cherry School District but is actually part of Allegheny, not Washington County, and is taxed accordingly. On the other side of the county, West Brownsville residents are on the tax rolls of Fayette County’s Brownsville Area School District, but their school taxes are based on Washington County property assessments.
Property tax calculations can be complicated at this point in a reassessment because final numbers aren’t yet available. With the appeal period ending on the last day of October, the county must certify property values by Nov. 15 so 2017 budgets, which must be adopted by Dec. 31, can be prepared. School districts operate on a different fiscal year, so their 2017-18 budgets are due June 30, 2017.
Because a tax levy for municipalities and counties must be revenue-neutral for the tax year following a reassessment, elected officials must vote on a millage rate reflecting that for 2017 spending.
The county, officials have said, do not plan a tax increase for 2017. If a municipality plans to raise taxes for 2017, its budget vote must be a two-step process. The first step sets tax millage that would maintain revenue neutrality. A second vote is required by law to demonstrate the disparity between the two levies.
Another reason why the new values disseminated last week are considered preliminary is that they do not include the effect of Local Economic Revitalization Tax Assistance, abbreviated as LERTA, or a Keystone Opportunity Zone where a waiver, abatement or exemption of local property taxes has been granted by resolution.
Washington and McGuffey school districts took Washington County to court in 2008 demanding a reassessment. After running out of legal options and facing a contempt of court finding, the commissioners agreed in 2013 to award a contract to Tyler Technologies to conduct a reassessment.
Property owners received their preliminary assessments this past spring and had an opportunity to have what Tyler called an “informal review” if they disagreed with the data. The reviews wrapped up June 2. According to Robert Neil, the county’s consultant on the reassessment, Tyler employees scheduled and reviewed 15,543 parcels, or 13.17 percent. Some people who asked for reviews did not show up. In 6,376 parcels, the characteristics or values were changed. Another 7,998 parcels were not changed.