Dec 20, 2002 By Joyce Koballa 2 min read

CONNELLSVILLE – The city council has decided to abandon a two-tier system in which land and buildings were taxed at different rates, in favor of a single tax structure. The two-tier system has been in place since the early 1990s, when it was introduced as a means to spur the development of vacant properties throughout the city.

Under that system, the city taxed land at 10 mills and buildings at four.

According to Councilwoman Judy Keller, Connellsville was the only city in Fayette County with the two-tier system.

“This is not a magic cure-all for everybody…this is our opportunity to right a wrong,” said Keller.

The council unanimously voted to eliminate the two-tier system and authorized and directed

city solicitor Joseph Ferens to prepare the necessary documents to do so.

The move coincided with the board’s adoption of the 2003 budget.

Although land and building taxes will now be taxed at 6.66 mills, the city will continue to take in the same amount of revenue.

The city expects to collect $939,691 in real estate taxes, $13,325 in residential taxes, $616,300 in Act 511 taxes, $15,100 in licenses and permits, $84,500 in fines and forfeits and $10,900 in interest and rent.

Council, along with business and property owners, initially met in November with Fayette County Chief Assessor James Hercik to address whether the city would incur any adverse repercussions if it replaced the two-tier tax system with a single tax rate.

Hercik said the single-rate system would generally shift the tax burden back to those owning structures rather than those owning land.

Mayor Judy Reed said some city property owners will see a tax increase, but the reason for it is the county’s reassessment, not the elimination of the two-tier system. The county recently completed its first property reassessment since 1958.