Council to review abolishing taxing structure
CONNELLSVILLE – Council will review documents before determining whether to abolish the current taxing structure for the city. While it appeared the attendants at the Wednesday meeting wanted a response in connection with their request to repeal the two-tier tax system, council members Judy Keller and John Whalen, along with Mayor Judy Reed, said no decision would be made until the regular Dec. 17 meeting.
“I want to take in as much information as I can,” said Keller, reassuring those in attendance that council is aware of the inequities in the current system.
Council members Bruce Jaynes and Chris Wagner have acknowledged they are in favor of implementing a single tax rate.
The public informational session was called to review with James Hercik, Fayette County chief assessor, the effect of tax rates on home and property owners if the two-tier system was maintained, revised or replaced with a single system. A similar forum was held in February to discuss the issue.
With the county property reassessment now completed, said Hercik, the taxing rate, which now stands at 113 1/2 mills for property and 17 1/2 mills for structures, would be re-evaluated at 17.926 4.14 mills, respectively.
Should the council opt to implement a single rate, the millage would be assessed at 6.66 percent.
“Whatever system is used, the city is still going to generate the same amount of money,” said Hercik. “What would change, is who is going to pay it.”
Although several council members pointed to figures that indicated some residents and business owners would pay additional taxes over 2002 rates, Hercik said it would be unfair to make the comparison with the reassessed rates and those from the previous year.
“You are not comparing apples and apples,” he said.
In documents produced by Reed, 14 property owners would see an increase of more than $500 in their tax bills, while 1,300 other residents would be assessed additional amounts up to $100, under the single rate.
Ten property owners would likely see a $500 decrease while 1,700 residents would see a drop of $100 or less in their tax rates.
Business owner Robin Bubarth noted her tax bill would be one that would increase under the single rate system, but she would favor the system change.
“This is your opportunity to right a wrong,” said Bubarth.
Keller, meanwhile, said council is required to adopt the current millage rate and budget on Dec. 17 as proposed during last month’s meeting, but if it is determined to abolish the two-tier system, the budget would be re-opened in January and the appropriate changes made to implement the new tax structure.