Mall, others appeal taxes
The Butler School District has about $465,000 in tax revenue at stake next year if several major businesses are successful in their tax appeal filings.
AK Steel, Clearview Mall, Target, Lowe's, Home Depot, and others have filed for tax appeals this year, trying to get Butler County to reassess those properties.
Clearview Mall is the most valuable property involved. The mall's assessment, with three parcels, is worth more than $6.5 million. Mall officials are trying to appeal the assessment down to $5.3 million.
If successful, the school district would be collecting $113,000 less from the mall, going to $506,850 from $620,300 in annual taxes.
School board solicitor Tom King said the appeals are not an out-of-the-ordinary occurrence.
“We see tax appeals every year,” he said. “I think that the county does its best and the school does its best to maintain fair numbers and fair assessments. It's not all that unusual to see this.”
Clearview Mall's suggested lower assessment was denied, and mall officials have appealed a second time. This will bring its case in front of a board of arbitrators.
AK Steel is appealing taxes on five properties, which have a combined assessed worth of $3.4 million. The company is asking for its assessment to be reduced to a combined $1.2 million.
If that appeal is successful, the school district would lose $212,000 in property taxes each year, from $324,800 to $113,000.
The reassessments of the parcels, which are divided into two areas, have both been denied.
Like Clearview Mall, those properties also have been appealed a second time.
In the first appeal, a four-person appeals board reviews each case. If an appeal is filed for a second time, it goes in front of a board of arbitrators.
The city, county, and township could also lose tax dollars from the appeal process, but not as much as the school district.
The school district and county have hired attorney David King of Nicklas King McConahy, Cranberry Township, to appraise the contested properties.
King was hired because he's approved by the county, and the county and school district would share his cost, 25 percent and 75 percent, respectively.
However, school board member Jim Keffalas said at a board meeting this month he wasn't happy with that decision. He wanted to bid out the position in hopes of having someone else do it cheaper.
“We're being asked by another government entity to fund $40,000 in appraisals,” he said.
The school district would contribute $37,875 for King as the appraiser. Choosing another appraiser could leave the district paying 100 percent of the appraisal costs.
“The county itself may not approve that because this is their approved appraiser,” said Dale Lumley, superintendent.
In addition to Clearview Mall and AK Steel, the appraiser will be fighting assessment appeals by Target, Lowe's, Home Depot, Kohl's and Bear Metallurgical.
While Tom King doesn't expect to see 100 percent success from the appeals, any tax loss to the cash-strapped district would impact its budget.
“The school is already committed to salaries and insurance,” he said. “It's one of the things that causes taxes to rise.”
Here are several of the major companies that are appealing their property assessments in an effort to reduce the taxes they pay.A lower assessment would cut tax payments to the Butler School District, Butler County and individual municipalities, but the majority of the impact would be on the school district because it has the highest tax rate.Information is from the Butler County Assessment office.AK SteelTwo parcelsAlso appealed in 1984, 1992, 1998Current assessment: $2.9 millionRequested assessment: $957,600Current school tax: $276,442Requested school tax: $90,780Initial request denied; appealed second timeAK SteelThree parcelsCurrent assessment: $509,664Requested assessment: $231,420Current school tax: $48,316Requested school tax: $21,938Initial request denied; appealed second timeBear MetallurgicalAlso appealed in 1990Current assessment: $335,820Requested assessment: $114,000Current school tax: $31,835Requested school tax: $17,596Initial request denied. Has not filed a second appeal.Clearview MallThree parcelsAlso appealed in 2000Current assessment: $6.5 millionRequested assessment: $5.3 millionCurrent school tax: $620,302Requested school tax: $506,857Initial request denied; appealed second timeHome Depot Also appealed in 2009Current assessment: $904,200Requested assessment: $627,000Current school tax: $85,718Requested school tax: $59,439.60Initial request denied; appealed second timeKohl’sAlso appealed in 2013Current assessment: $742,500Requested assessment: $627,000Current school tax: $70,389Requested school tax: $59,439Initial request denied; appealed second timeLowe’sAlso appealed in 1995 and 2003Current assessment: $1.2 millionRequested assessment: $547,200Current school tax: $113,254Requested school tax: $51,874Initial request denied; appealed second timeTargetAlso appealed in 1994 and 2007Current assessment: $1.2 millionRequested assessment: $1 millionCurrent school tax: $117,096Requested school tax: $96,184Initial request denied; appealed second time
