Connellsville council hopes to speed up taxing structure change
CONNELLSVILLE – The implementation of the single rate taxing structure will not be delayed, following council action taken Tuesday to expedite the matter. Although it was initially thought the two-tier tax system would remain in effect through 2003, city solicitor Joseph Ferens advised the panel it could enact the single tax system and eliminate the dual collection system.
Council had moved in December to change the in-place tax structure while at the same time approving the city budget utilizing the system.
After taking the action, questions began to surface as to whether it could implement the single rate method after utilizing the two-tier system to calculate the city taxes.
According to Ferens, although the two issues are related, they are separate in that two individual motions were made – one to approve the revenues and expenditures and the second to establish a tax rate to generate the revenues.
“I’ve done considerable research and had a considerable amount of discussion with an awful lot of people,” said Ferens. “We are not amending the budget, we are amending the tax rate.”
The spending plan can only be re-opened following a municipal election year to allow newly elected officials the opportunity to make changes to the budget.
According to Councilwoman Judy Keller, who serves as director of accounts and finance, the notices that would reflect the rates and amounts to be paid by property owners have not been prepared by the city treasurer’s office pending notification by council of its action.
“We won’t have the expense of having to have them redone,” said Keller.
Council was urged to restructure the system by several business owners who claimed the two-tier system unfairly taxed those providing parking lots for customers and those with unused land adjacent to homes.
The single rate will tax both land and structures at 6.66 percent. The city will not see any change in the amount of revenues generated utilizing the single rate system.
In other action, council also:
– Approved the installation of two handicap parking signs along East Apple Street.
– Agreed to purchase two computers and a printer, along with associated hardware for the installation.
– Hired Richard L. Ashmun as assistant code officer at an annual salary not to exceed $1,200.