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Senate Passes Pippy Bill to Prevent Windfall Tax Hikes
HARRISBURG -- The
state Senate has approved legislation sponsored by Sen. John Pippy (R-37) to
protect Allegheny County taxpayers from being hit with extreme tax hikes
following countywide reassessment.
Senate Bill 726 was sent to the
House of Representatives for consideration.
“This is good news for
Allegheny County taxpayers. It will prevent windfall property tax hikes and
require more accountability for tax increases,” said Pippy.
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) is
leading the effort to pass the measure in the House of Representatives.
“Representative Mustio and I
announced this legislation in May, and I’m grateful that my Senate colleagues
acted to pass it so quickly,” said Pippy. “Now we need to get it passed in the
House and in the hands of the governor to be signed into law.”
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