Saturday, December 31, 2011

On Allegheny County Property Tax Follies


If we're going to have property taxes (and I'm not sold on the necessity, but here we are!) we have to reassess property values regularly -- so that perceived increases in property value don't pile up, don't go unchecked, aren't as daring when they do happen and don't ruin the stability and predictability of Allegheny dwellers' budgets. Also so that all County reassessment functions remain good at what they do over a decade.

Secondly, if we are going to reassess property values only after a rare court order, we should NOT send out tax bills to ANYBODY until ALL property in the county has been duly reassessed, the appeals exhausted, and the tax rate DULY LOWERED. Not a day before.

22 comments:

  1. Tell that to the judge.

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  2. Blame the County, not the judge, for trying to run out the clock.

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  3. Indeed. But if the judge's understandable rage at the county is being taken out out county dwellers in unintended and inequitable ways, that injustice should be remedied to the extent possible.

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  4. Here's what (most likely) happen if the County stalls and stalls and stalls but eventually HAS TO send the bills out:

    Everyone who has a mortgage with a tax escrow arrangement will get slammed. Hard.

    The reason? The mortgage holder looks at a property's tax bill and then requires 1/12th be paid monthly prior to the bill actually being paid. If there is not enough in escrow, or the escrow balance falls below any other threshhold, the mortgage lender/provider then says "Pay up!" Typically, in the form of higher payments for the next year PLUS the higher payment amount for the 'increase' in the tax bill. This really doesn't settle out for at least 2 years.

    Mad enough if the pain is bad enough? Sue Fitzgerald personally. While the RE tax systems stinks, it's the only game in town right now. And, Fitzgerald is clearly and openly being his typical repugnant self.

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  5. CM - Technically, you'd want to try suing Dan Onorato personally or professionally. Rich hasn't yet been sworn in (congrats, Rich!) and as a result hasn't actively neglected his duty to make the machinery of taxation operate smoothly.

    Personally, I'm like, if you have an "escrow arrangement", there's a decent chance you can pay a little more towards the maintenance and betterment of schools, transportation and health services. Allegheny County is responsible for important things which the private sector, municipal and state government are not. Make or break things for a region. Sound causes for progressive redistribution.

    But I've no doubt to some folks in escrow, the KIND of hit they're about to take could trigger a default, bankruptcy, divorce or worse. Which is why it's important that politicians shouldn't stick their heads in the sand.

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  6. Fitzgerald is saying silly things in reference to the reassessment. Many of our local officials are trying to appeal to our worst natures, saying they will not allow taxes to be raised and if possible they will be lowered. Apparently they plan to raise revenues with gas leases (too bad if our water supply is poisoned). I know I didn’t vote for Rich Fitzgerald in either the primary or general (and I didn’t vote for Raja in the general). I can’t remember if I voted for Dana Dolney in both or only in the general.

    CM, weren’t you the commenter calling for an end to extended unemployment compensation on 2PJ? Are you concerned with helping the poor who might be hurt by reassessments or only with protecting the McMansion’s of the rich? Or do you just want to criticize Democrats mindlessly?

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  7. Personally, I'm like, if you have an "escrow arrangement", there's a decent chance you can pay a little more towards the maintenance and betterment of schools, transportation and health services.

    I think the number of people with a mortgage without an escrow is small enough that it doesn't matter.

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  8. One of the many articles a while back had some quotes from someone representing escrow agents. He said they were prepared for dealing with the new billing situation.

    Anyway, the County's foot-dragging ended up with this situation in which in order to give people enough time for informal appeals, the assessments had to go out before the millages were set. That's unfortunate, and again the County is squarely to blame, but I suspect it was the right decision to make room for the informal appeals in the schedule.

    Generally, I'm not quite sure what Bram means about not sending out tax bills while waiting for other events to unfold (note appeals could still be filed in subsequent years, so it is never really over).

    The various taxing jurisdictions need these revenues to function, and in fact some jurisdictions may well have to send out one bill using the old numbers, and a second bill correcting everything in light of the new numbers. But one way or another, bills have to go out, because the revenues need to come in.

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  9. One of the many articles a while back had some quotes from someone representing escrow agents. He said they were prepared for dealing with the new billing situation.

    I doubt it. In my experience mortgage servicing is the epitome half-assed management. CM is right that they will adjust the payment too late and then demand prompt repayment of their oversight.

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  10. "and in fact some jurisdictions may well have to send out one bill using the old numbers, and a second bill correcting everything in light of the new numbers"

    In some jurisdictions, fine. But I guess what I'm saying is, hasten the reassessments in Fox Chapel, Sewickley and Cranberry. Utilize a third party if we have to so as to make haste. And use that haste to lower tax rates promptly based on a *full* set of data, even if it's a data set subject to change based on the exhaustively extensive appeals.

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  11. Interesting list of communities to propose for expedited reassessments (although Cranberry is in Butler, no?). There might be a political logic to that list, but of course Wettick's mandate is to get relief for the winning plaintiff class.

    In any event, he has definitely been riding the County hard lately, and I suspect he will set a tight schedule for the suburbs.

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  12. (although Cranberry is in Butler, no?) Figures.

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  13. ASK JUDGE TONY CHOEFFE ABOUT PANANMA RED AT WINKY'S AND DEAN'S FIELD IN THE 70'S AND 80'S??

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  14. @Bram 3:17.. If you think hot-head Fitzgerald didn't have anything to do with this latest refusal to send information to the City and the eventual refusal to send out information to everyone else, you are very naive.. which I don't think you are, btw. Onorato checked out long along, probably before November because it was failt accompli that Fitzgerald would win. Fitzgerald was behind this.

    Fitzgerald was also behind the 20% increase in County taxes, which, btw, could be a good story for 2012. Which comes first vis-a-vis the 5% 'windfall' protection? Increased taxes or increased assesments? At the stroke of midnight on January 1? Hmmmm?

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  15. last week@edheath said a sec'y in ACORN has more
    integrity than any Republican office holders
    now he says he voted for a waitress for
    County Exec. Local comedian??

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  16. Wow... a Dean's field Winky's reference I don't get. I must have been too young or naive. They did have this Robocop video game that was cool.

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  17. City Council votes the Gypsy Queen council Prez
    again. New alliances created . The East End Chief
    will be vetting job apps for now while he updates his
    resume! The Progressive Bloc has been reduced
    to three Zapatistas Bruce, Natalia,Guillermo!! Oh Doogie
    where hast thou gone!!

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  18. Um, yeah! That's just what I was talking about, Your Honor!

    If everyone else can take credit for making this happen you can be sure I won't miss out...

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  19. I love Fitzy using "me" instead of the royal " we"!!
    I had the papers filed on behalf of me!! thought
    he worked for us!

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  20. Fitz files papers! Bram blogs with penetrating logic and punishing frankness! Peduto writes letters and press releases! Ravenstahl calls for calm at gentles Greenfield! The School Board thinks! Judge Wettick rocks! A role for everybody and everybody in their role!

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