Southmoreland seeks tax hike above 10 percent allowed
The Southmoreland School District wants court permission to raise real estate taxes beyond the maximum 10 percent allowed by law this year, and a Fayette County judge has given “any interested party” until June 12 to file responses to that request. Judge John F. Wagner Jr. has also scheduled a hearing on the school district’s petition for 9:30 a.m. on June 19, noting that the school district needs a decision by June 26 in order to pass its final budget before the June 30 deadline.
Southmoreland Superintendent Dr. John Halfhill was not available for comment Wednesday. School district business manager Bill Porter did not return a call seeking comment.
Since a countywide reassessment went into effect this year, Fayette County school districts by law had to peel back their millage rates in order to offset a nearly five-fold increase in assessed values. Under this revenue-neutral scenario, Southmoreland’s millage rate for Fayette would fall from 58.4 mills in the 2002-03 fiscal year, which ends June 30, to 10.8 mills in the 2003-04 fiscal year, which begins July 1.
Any millage rate above 10.8 approved by the school board constitutes a tax increase of its own choosing, said James A. Hercik, CPE, the county’s chief assessor.
“Any of the school districts that exceed the revenue-neutral millage rate are imposing a tax increase, just like in any other year,” said Hercik.
“Really, the first thing they should do when they set their budget is set their millage rate at the revenue-neutral rate.”
Southmoreland’s court action would affect Fayette property owners in Everson Borough and Upper Tyrone Township.
Hercik said that any taxpayer within the school district – which is based in Westmoreland County – could file an answer to the school board’s petition.
Wagner specified that those answers be filed with the court and with school district solicitor David G. Petonic of Scottdale within 15 days of his May 28 order.
Basically, the judge said that any interested party must “show cause why (the school district) should not be permitted to increase the total amount of real estate taxes” for 2003-04 by more than the 110 percent of the prior year as permitted by state law.
Wagner’s order did not specify what millage increase the school board is seeking. However, at the revenue-neutral 10.8-mill rate, property owners would pay $108 in school taxes for every $10,000 of assessed value.
Increasing that figure by a hypothetical 1 mill, to 11.8 mills, would mean that property owners would pay $118 in school taxes for every $10,000 of assessed value.
Hercik said that school districts are permitted to increase their real estate tax take by more than 10 percent in a reassessment year if they gain court approval. “That’s what Southmoreland is doing. … They filed a motion in court. They want to fight the 110 percent (cap),” said Hercik.