Connellsville may change tax structure
CONNELLSVILLE – City council will meet again with the county’s chief assessor before determining whether the in-place taxing structure will remain or be abolished. The panel has scheduled a Dec. 4 informational session with Fayette County Chief Assessor James Hercik to discuss any adverse repercussions should the city determine to eliminate the current two-tier tax system and replace it with a single tax rate.
The two-tier system places a higher millage rate on property and lesser rate on structures. Owners of parking lots, industrial sites or undeveloped lots are most affected by the plan. The system was implemented in 1992 in an effort to spark development of the downtown business district, which has never materialized, according to those paying the higher rates.
In February, council met with Hercik and local business owners and residents regarding the issue, but have yet to take any action in the matter.
Both business and property owners in attendance implored council to repeal the inequitable system.
“I need to know for certain how this is going to impact the residents of the city,” said Councilwoman Judy Keller as the panel broached the topic at its most recent meeting.
Hercik, meanwhile, said Wednesday that he has been requested to provide the latest property evaluation figures based on the new county reassessment at the December public informational meeting.
“I will be able to tell them what the new millage figures for next year should be regardless of what system council chooses to implement,” said Hercik.
Additionally, said Hercik, he will provide tax rates for various properties based on the current tax system and the single rate in order for those in attendance to have a better understanding as to what the impact will be to those owning commercial or residential properties.
“I’m not coming to the meeting to make the decision for the council or to render an opinion as to which system is better,” he said. “I am coming only to explain the differences in the two systems.”
While residents and business owners may pay more or less, depending upon the tax system chosen by council, the revenues generated will remain intact, said Hercik.
The implementation of the single-tax-rate system would essentially shift the tax burden back to those owning structures rather than on land values.
Council’s dilemma, speculated Hercik, is whether the majority of the taxpayers will see a benefit to equalizing the tax burden and support the change.
“Years ago, when the city went to the two-tier system, 80 percent of the residents received a tax reduction and 20 percent got an increase,” said Hercik. “If council determines to revert back to the old single-rate system, 80 percent of the taxpayers may have an increase (in their tax bills).”
Councilwoman Chris Wagner, who has spearheaded the initiative, said she is encouraging residents and business owners to attend the Dec. 4 meeting to learn how they will be impacted if a new taxing structure is enacted and to offer their viewpoints in connection with the proposal.
The meeting will be held at 7 p.m. in council chambers.