Greater Latrobe OKs decrease in taxes for plaza, raises for property tax collectors

Greater Latrobe School Board has signed off on a settlement that will reduce the property tax assessment for a shopping center in Unity by 28%.

It also voted to increase the compensation for two elected real estate tax collectors ahead of this year’s municipal elections.

The board this week approved the settlement with First Latrobe Co. that reduces the assessed value of Unity Plaza — at routes 30 and 981 — from $600,000 to $432,000, for 2020 and this year.

The settlement also is subject to approval by township and Westmoreland County officials.

According to school district Solicitor Ned Nakles, the settlement represents a figure that had been set by the county’s tax assessment appeals board before objections were filed by both the district and the plaza owner.

The assessment is calculated by applying the state tax equalization ratio for the county to proposed market values for the property. That market value was $3 million for 2020 and just under $3.3 million for 2021.

According to court documents, the parties have indicated the settlement is “just and equitable,” properly reflects market value and will allow them to avoid the cost of litigation and uncertainty about the local tax base.

Greater Latrobe Business Administrator Dan Watson has said the decreased assessment cost the district $14,112 in the 2020-21 budget year. The impact on future revenue will be determined by whatever millage rate the school board sets.

The board also approved increases in compensation for property tax collectors in Unity and Youngstown. Rates must be set every four years, prior to the deadline for candidates for the positions to file nominating petitions.

As recommended by Watson, the Unity collector’s compensation will increase by about 2.5% for each of the four fiscal years in the elected term, rising from $69,638 in 2022-23 to $75,038 in 2025-26.

Raises for the collector in the small borough of Youngstown — with a population of 326 in the 2010 census — will grow larger each year, from 2.81% for 2022-23 to 3.22% for 2025-26. The actual compensation will increase from $4,385 to $4,805 over the four years.

Watson noted state requirements have added to the workload for collectors — including the ability for property owners to pay real estate taxes in installments and the application of Homestead and Farmstead exclusions for qualifying residential properties.

According to Watson, the compensation rates for the Unity collector closely align with a Pennsylvania Economy League study that found the average cost to collect property taxes was 0.24%. He said Greater Latrobe currently compensates the Unity collector at 0.28% of collections, which would be augmented by a “reasonable living wage adjustment.”

Because of Youngstown’s small size, he said, “it would be difficult to fill the position” if the district attempted to match that compensation rate with a county or state average.

In 2019-20, the district paid the two collectors a combined $70,003 for property tax receipts of about $23.4 million.

The school board doesn’t set compensation for the real estate tax collector in Latrobe, which is a position that is appointed by city council.