Reassessment: Why Now, Its Impact and Its Cost
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Overview of Blair County Reassessment
This document, authored by Blair County Commissioner Terry Tomassetti, addresses public concerns regarding the county's property reassessment. It explains the financial necessity of the project, its impact on tax rates, and clarifies that the $3 million cost is already funded through existing bonds.
Why Now?
The reassessment is driven by two primary factors:
- Budget Deficit: County projections indicated a 2017 deficit exceeding $1 million with no reserve. This shortage is caused by stagnant revenues, rising costs, and mandatory contributions to the state pension plan.
- Lack of Uniformity: There is a significant disparity in land values compared to other Pennsylvania counties. State studies indicate an average error of $60 for every $100 in taxes paid due to outdated values. Approximately one-third of property owners pay 60% more than their property's actual value warrants.
Impact on Property Owners
- Accurate Valuation: Properties will be taxed based on accurate current values rather than unreliable 1958-based figures.
- Tax Adjustments: The initial readjustment is expected to result in:
- One-third of properties seeing no change.
- One-third seeing a reduction.
- One-third seeing an increase.
- No New Tax Increases Needed: Despite misconceptions, none of the seven school districts or twenty-four municipalities need reassessment to impose future tax increases. Only taxing bodies near their statutory millage maximums would need it to raise revenue.
Millage Caps and Specific Jurisdictions
The document details the tax limits (millage caps) for various local entities:
- County: Has a 30 mill maximum. Currently at 2. 5 mills (8. 3%), it is the only body realistically needing reassessment to increase taxes.
- Townships: Have a 19 mill maximum. Freedom Township is highest at 9. 45 mills and would need a 100% increase to reach the cap.
- Boroughs: Have a 35 mill maximum. Bellwood is highest at 28. 5 mills, requiring a 23% increase to reach the cap.
- Altoona and Tyrone Boroughs: These are home rule communities with no millage cap.
- School Districts: Act 1 changed how they increase taxes, basing it on an index that allows for an overall percentage increase.
Cost and Funding
- No Tax Hike for Reassessment: Real estate taxes in Blair County did not and will not need to be increased to pay for the reassessment.
- Bond Funding: The $3 million cost was included in the 2014 Bond, which totaled $11 million. This bond also covered $5 million for courthouse and parking garage repairs, plus the 911 towers (paid through a 2011 Bond in excess of $7 million).
- Debt Millage Trends:
- 2008: Debt millage was 5. 738 (highest in 8 years).
- 2015: Reduced to 4. 164 mills due to low interest rates and paying off older bonds. This level includes payment for the reassessment cost.
- 2016: Expected to stay at 4. 164 mills (assuming no future borrowings).
- 2017: Expected to drop to approximately 3. 39 mills.
- 2029: The 2014 bond is scheduled to be paid off.