Officials to change property tax ratio

MERCER, Pa. -- County commissioners said they plan to change the county property tax assessment ratio from 331/3 to 100 percent effective next year.
The action, which they plan to take at Thursday's regular meeting, would allow the county to collect about the same amount of taxes from property owners while reducing the millage rate.
This would free commissioners from having to return to common pleas court -- as they have for the past five years -- for permission to exceed the 25 mills they can impose on their own authority. One mill now brings in about $330,000.
The county now levies 32 mills -- the 25 mills imposed by commissioners, five additional allowed by the court, and two for debt service.
Not tax increase: The ratio change is not a tax increase, commissioners said. The law forbids taxing districts to use the change to create a tax windfall.
It requires that county and municipal taxing districts set the new millage rate at a level not to exceed 5 percent more than what was collected the previous year. School districts may increase by 10 percent. These levels can be exceeded only with court approval.
Although the county would be limited to collecting 5 percent more next year than this year, in 2003 and succeeding years, commissioners would be free to increase millage rates until they again reach the 25-mill ceiling.
Mickey DeForest, county tax assessment director, said the millage rate would go from the 20s to the low teens, although the exact amount has not been determined. Millage for debt service would not be affected.
All the other municipalities and townships in the county would have to adjust their taxing rate accordingly, DeForest said.
The only exception is Sharon, which already collects taxes on 100 percent of the assessed property value. Sharon was allowed to do this because it is a third-class city, and state law allows cities with the designation to collect 100 percent.
More flexibility: Commissioner Brian Shipley commented that the action will give the county flexibility to deal with unforeseen expenses.
Although a countywide reassessment could bring more taxes into the county, DeForest said property reassessments are unpopular and viewed as tax increases by voters.
Commissioner Olivia Lazor said the nearly $3.6 million cost for a countywide property reassessment would further strain finances. Mercer County has not had a reassessment for 27 years.
Getting the word out: DeForest said he is willing to speak to any county group about the new ratio. He will present it to representatives of the county's townships when they have their annual meeting Thursday night at the County Extension Office on state Route 19.
In addition, all property owners will be mailed a notice of the ratio change as required by law. Taxpayers will have the right to appeal their assessment.
Commissioner Gene Brenneman commented that he hopes the state Legislature will provide some tax relief soon to property owners who shoulder 98 percent of the county tax burden. The Legislature is looking at ways to spread the tax burden more equitably.