FOR IMMEDIATE RELEASE
06/23/2005
Back 

Pippy Bill to Prevent Windfall Tax Hikes Approved by Committee

Requires revenue-neutral millage rates following reassessment, unless approved in separate, public vote. 

Harrisburg – Legislation sponsored by Sen. John Pippy (R-37) to protect Allegheny County taxpayers from tax increases following a countywide reassessment has been approved by the Senate Finance Committee.  Senate Bill 726 now moves to the full Senate for a vote. 

            "The purpose of property reassessment is to provide accurate data for fair taxing, not to provide a back-door tax increase," said Pippy.  "This legislation will stop automatic increases and require an open, public discussion." 

The measure requires that following reassessment municipalities and school districts determine millage rates that are revenue-neutral compared to the previous year. To set a tax rate higher than the revenue-neutral rate, they would have to take a separate and specific vote in a public meeting.  A municipality or school district that violates the limitations would have to refund with interest the excess taxes paid by homeowners. 

The Second Class County Code permits a taxing body to institute a final tax rate up to five percent greater than the amount it levied on properties the year before.  Under the proposed legislation, in cases of dire need – to purchase new equipment related to public health and safety, for example -- a political subdivision may petition the court for approval to increase the millage rate beyond the five percent that was approved via public vote. 

Local efforts to limit tax hikes following reassessments remain bogged down.  Common Pleas Court ruled May 12 that Allegheny County Chief Executive Dan Onorato's property assessments plan is illegal and would create more problems for the system.  Rep. Mark Mustio (R-44) has introduced legislation similar to Senate Bill 726 in the House of Representatives. 

            "Representative Mustio and I began this effort in May and I'm encouraged that we're already seeing legislative action," said Pippy.  "We're both going to work hard to see that this legislation is approved by the Senate and House and signed into law as soon as possible." 

###    

CONTACT: Matt Campion (412) 571-3822

Home | Profile | News | Newsletters |  Issues | Urban Affairs & Housing Committee | District Info | Contact Me | Office and Staff | Senate Resources | State Resources | Federal Resources | Senior Resources | Veterans Resources | Kids Resources | Media Links | Photo Gallery | Search

2006 © Senate of Pennsylvania