HERMITAGE Millage to drop, but not tax bill

A county change is property tax assessment ratio is responsible for the change.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
HERMITAGE, Pa. -- City residents will see their municipal property tax millage drop from 15 to 5 mills next year, but they won't be saving any money.
Mercer County is changing the property tax assessment ratio countywide from the current 331/3 percent to 100 percent next year, and every municipality and school district must follow suit.
The only exception is the city of Sharon which, as a third-class city based on population, is already at the 100 percent assessment.
Mercer County assessments are based on 1970 construction costs, the last date that a reassessment of properties was done.
Explanation: Michael DeForest, county revenue director, was at the Hermitage commissioners workshop Thursday to explain the process, telling city officials that they will have to reduce their millage from 15 to 5.
With a 100 percent assessment, however, the end result will not change.
The city will collect the same amount of property tax revenue it gets this year, and property owners will still be paying the same amount of taxes, DeForest said.
The county unveiled the plan earlier this month, and DeForest is traveling to various taxing bodies to explain the process.
County officials said they changed the assessment ratio to avoid having to go to Common Pleas Court each year to get permission to set millage beyond the legal limit of 25 mills for counties in Pennsylvania.
Mercer is at 32 mills, under the 331/3 ratio, with 2 mills earmarked for debt service and 30 mills for operations.
DeForest said the county real estate millage will drop to just under 11 mills next year.
Senior center: In other business, the city commissioners said they will approve a subdivision and a land development plan at their meeting Wednesday to clear the way for the Mercer County Area Agency on Aging Inc. to open a new senior citizen center on North Buhl Farm Drive.
The agency bought a 6,500-square-foot building there from the Bill Rudge Ministries of Living Truth Inc. in January for $379,000 but plans to erect an 8,834-square-foot addition to house all of its programs.
The commissioners are expected to approve a subdivision adding 0.4 of an acre to the agency's property to make room for the expansion and additional parking facilities.
The commissioners are also expected to give their approval to the land development plan that outlines the addition.