Savings entice buyers
People who move from Allegheny County north into Butler County in search of lower property taxes might be on to something.
Lynn Maier, a Realtor with Berkshire Hathaway in Cranberry Township, said people who are shopping for houses in northern Allegheny County and southern Butler County can save in the range of 35 percent to 40 percent by choosing to live in Butler County.
Gina Loebell, a Realtor with Coldwell Banker in Butler Township and the former president of the Butler County Association of Realtors, agreed.
“I’d say that’s a big part of the move from south to north,” Loebell said.
The Butler Eagle compared a couple of properties in Butler County municipalities and a couple properties with similar market values in Allegheny County municipalities and calculated the tax payments for the properties. The Eagle concentrated on municipalities along the Allegheny-Butler border.
This covered municipal, county and school taxes.
Even though the property tax millage rates in Butler are higher, the Eagle found that houses in these communities have lower property taxes than their counterparts in Allegheny County.
Two properties on Autumn Hill Drive in Cranberry Township had assessed values of $26,140 and $29,680 — with the estimated market values being $326,541 and $319,892. The first house paid $4,118 in taxes in 2015, and the second paid $4,675.
Just over the county line on Quail Court in Marshall Township, two properties there had assessed values of $265,700 and $248,800 — with the estimated market values being $283,700 and $266,800. In 2015, they paid $6,258 and $5,860 in taxes, respectively.
Two properties in Adams Township, one on Cardinal Court and the other on Eagle Road, had assessed values of $35,580 and $35,290. The estimated market values of the houses are $421,516 and $390,000. The houses paid $4,532 and $4,495 in taxes in 2015.
Two properties on West Grove Drive and West Grove Circle, just over the county line in Pine Township, had assessed values of $364,800 and $336,700, respectively, and the estimated market values of the houses were $382,800 and $354,700.
Those houses paid $9,097 and $8,396 in property taxes last year.
Two properties in Middlesex Township — one on Keithwood Drive and one on Manor Drive — had assessed values of $23,430 and $24,000, with estimated market values of $217,124 and $164,049. In 2015, they paid $3,178 and $3,255 in property taxes.
Down in Richland Township, two properties on Lynn Lane and Grubbs Road had assessed values of $273,600 and $135,500, and market values of $291,600 and $153,500. Owners of these properties paid $7,151 and $3,542 in taxes in 2015.
Chris Savage, chief assessor for Butler County, said there is no easy way to calculate the difference in taxes between the two counties.
Butler uses an assessment from 1969 while Allegheny uses a 2012 assessment. Because of this, assessed values of Butler properties are much lower than the assessed values in Allegheny, even though the market values are similar.
To calculate the taxes paid, you use the government-assessed value and the millage rates from the county, the municipality and the school district the properties are in. A mill generates $1 in tax for every $1,000 of a property’s assessed value.
Because the assessed values in Butler County are lower, the millage rates here are higher so as to generate enough tax money.
“I still think ours are lower than Allegheny County,” Savage said.
Arax Hovsepian, a Realtor with Century 21 in Cranberry Township and the president of the Butler County Association of Realtors, said, in some cases, people pay double the taxes in Allegheny compared to Butler.
However, taxes are not the only factor in deciding where to live.
Maier said people who have school-aged children and want to have their children go to good schools, but have tighter budgets will often choose Butler County houses in the Mars and Seneca Valley school districts.
Hovsepian said in her experience most people with school-aged children living in Allegheny County are not looking to make the move north.
“Some people prefer to stay in the school system they are in,” Hovsepian said.
She said the primary customers she sees looking to move north are empty-nesters and couples who do not have school-aged children.
On the other hand, Maier said people who work in Pittsburgh and want to or need to stay closer to work will choose to live in Allegheny County.
“Each family has different needs,” Maier said.
She said her business is about 50 percent in Butler County and 50 percent in Allegheny County.
She said that years ago Butler County often was considered an inferior choice for housing, but development during the past 20 years has helped her sales in Butler increase about 70 percent.
Loebell said although taxes in Butler County are lower, she said they likely will rise during the next several years, which may slow the pace of people moving north.
Additionally, she said that Act 13 Marcellus Shale natural gas impact fees — which go to counties and municipalities — are slowing down, which could further drive up property taxes in Butler County.
