Jan 7, 2003 By Patty Shultz 3 min read

CONNELLSVILLE – Council is awaiting an opinion by its solicitor in connection with the city’s taxing structure before any action is taken in implementing a new system. “We’re going to do whatever (solicitor) Mr. (Joseph) Ferens advises us to do,” said Councilwoman Judy Keller on Monday. “We’ll live with (the old or new) system, one way or another.”

At its December meeting, council voted to eliminate the two-tier tax system under which the city has collected its real estate taxes for a decade and replace it with a single rate system.

After taking the action, questions began to surface as to whether council could implement the single rate method after passing its budget utilizing the two-tier system to calculate the city taxes.

Councilwoman Chris Wagner, who spearheaded the initiative said Monday that her inquiries have indicated the plan can be implemented through a resolution to establish the new 6.66 percent millage rate and notification of the appropriate authorities.

“I understand that this change does not require the re-opening of the budget as previously thought,” she said. “It is only a matter of doing the paperwork and contacting the county.”

The budget and tax rates are established through resolution of council. The spending plan can only be adjusted in January after its passage if newly elected or re-elected members are placed on panel through a municipal election.

Michael Foreman, policy specialist with the state Department of Community and Economic Development Governor’s Council for Local Government Services said that changing the method for collecting taxes and taking action to implement the plan is not a process that requires council to re-open its 2003 budget.

“As long as (council) adopts the new system to give the proper authorities enough time to prepare tax statements showing the appropriate rate, there should be no problem,” said Foreman. “I don’t consider this as re-opening the budget; they have already established a levy to be generated from the tax, but how it is collected, whether through a single or double rate, is the only question.”

The city will receive the same amount of revenue under either system.

James Hercik, Fayette County’s Chief Assessor, said his office would only require a copy of the resolution documenting the new millage rate.

“It’s fairly simple as far as we are concerned,” he said.

Ferens could not be reached for comment on Monday.

Business owners had pushed for the elimination of the two-tier tax system, which placed a higher millage rate on property and lesser rate on structures, for several years.

The system was implemented in 1992 in an effort to spark development of the downtown business district, but never materialized, according to those paying the higher rates.

Wagner, meanwhile, said she anticipates Ferens will advise council of his decision by the end of the week.

“I do not see any problem at this time of implementing the single tax rate this year, but we’ll certainly heed Mr. Ferens’ advice,” she said.