Reassessment poses a tax challenge for McKeesport
With the discount period for real estate taxes coming to a close, McKeesport officials want residents to understand apparent changes to their property tax bills.
“We did not raise taxes in McKeesport,” Mayor Michael Cherepko said, noting that council members and city hall employees have been questioned by residents who have higher bills in 2013. “The biggest misunderstanding is that, because residents receive a city tax bill, some people are under the impression that we raised taxes, but in fact, Allegheny County has been going through a reassessment process for several years.”
When municipalities set their real estate tax rates for 2013, they were to factor in reassessed property values that went into effect this year.
Several communities decreased their tax rates to stay within a 5 percent windfall that state law allows in the year after a reassessment. On the county level, that caution prompted Allegheny County Council to approve a budget that lowered its taxes from 5.69 to 4.73 mills, a fraction more than the 2011 rate of 4.69 mills.
During last week's council meeting, president Darryl Segina asked when McKeesport's millage rate was going to be set, because he had fielded calls from concerned residents.
Solicitor J. Jason Elash explained the millage rate was held at 4.26 mills on buildings and 16.5 mills on land when council adopted the city's 2013 budget in November, clarifying that residents may have been asking if the city is prepared to revise its millage based on new assessments.
“Can you give me an update on the millage itself and where we stand with where we are going to locate our millage,” Segina asked.
City officials explained that property tax bills were mailed early in the calendar year, because the city's tight budget of $17.9 million depends on early tax revenue.
“There's not a lot a city like McKeesport can do,” Elash said. “You can't afford to operate without tax revenue.”
Council could not postpone approving the city's millage rate, because that would have prevented bills from being distributed. With the bills sent out and some already paid, the city will have to back-track if the 5 percent windfall is exceeded.
“The adjustment will be made once all of the appeals are filed within the city,” Cherepko said. “We want to make sure that we are not short-changed, and all of the residents will be made whole in one way, shape or form once we adjust the millage before the end of the year.”
Real estate taxes are due at a discount by April 15, at face value on June 17 or at a penalty rate later in the year.
Councilman A.J. Tedesco asked if residents who pay their bill before the millage rate is revised would be entitled to refunds. Cherepko said there are several options to resolve overpayment, including a credit on 2014 tax bills.
“We have an overwhelming amount of appeals, and the appeals are winning for the most part,” Cherepko said. “The (assessments) are being dropped by a significant amount of money.”
The deadline for appeals was listed on the Allegheny County website as April 1.
“From my understanding, they're not even close to being done with the appeal process,” Elash said.
Cherepko said assessed property values seem to be inaccurate, prompting a high volume of appeals.
“There's no consistency,” he said. “You can have three or four vacant lots in a row, with one assessed at $1,500 and another assessed at $10,000. It's just not right.”
Tedesco agreed the assessment process is flawed — something he illustrated by describing two houses in his neighborhood.
“I have a house that's been abandoned for 20 years across the street from me. They have it assessed at $15,000,” he said. “One house up from me was sold for $40,000. They have that assessed at less than the abandoned house.”
Jennifer R. Vertullo is a staff writer for Trib Total Media. She can be reached at 412-664-9161, ext. 1956, or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Mon Valley steelworkers rally for new contract
- County shuts down Clairton demolition work
- West Mifflin Community Day returns to airport grounds
- Grant will benefit Allegheny County Airport in West Mifflin
- McKeesport Area schools to provide outreach activities
- Paving, electronics upgrades evident at Steel Valley
- Homicide charges filed gainst Pittsburgh man in Munhall man’s death
- McKeesport heroin bust nets 1,700 stamp bags, $3,880 cash
- Mifflin Road project is on schedule, within budget
- Shootings leave 1 dead in Homestead, teen hospitalized in McKeesport
- West Mifflin Area boosts technology