Court orders property reassessments in Allegheny County
(The Center Square) — Property owners in Allegheny County could soon have their tax rates change after a state court ordered a reassessment to begin next year.
The ruling means millage rates would change in the commonwealth’s second-most populous county for the first time since 2012.
A recent investigation by The Center Square revealed properties there are currently assessed at about half their value, meaning taxes on a $200,000 home or business are calculated as if they were only worth $100,000.
This often leads to appeals by school districts when new residents move in, slapping them with a doubled tax bill after buying their homes. This is on top of climbing tax rates at the county and local level to cover the gaps left by smaller payments from undervalued properties.
Last year, elected officials raised the county’s property tax rate by 36%, to 6.43 mills from 4.73 mills, the first hike in more than a decade. This upcoming school year, more than two dozen of the county’s 42 suburban school districts are poised to raise the property tax rate an additional 1%-5%.
Unlike most states, Pennsylvania does not require counties to reassess property on a regular schedule, such as every few years. According to some, it’s the only state in the country with no such regulation.
Allegheny County Chief Executive Sarah Innamorato said Monday that “in an ideal world,” the law would change — and nonprofits would “pay their fair share.”
“Regular countywide reassessments will be an improvement over the current ad hoc approach,” she said. “Property owners deserve transparency about how their property is valued, while school districts and municipalities deserve predictability as they plan their budgets.”
The court order gives the county five years to complete the first reassessment, with subsequent reviews every five years thereafter.
Some of Pennsylvania’s 67 counties have not reassessed property values since the 1960s.
Mark Stricherz contributed to this report.
