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For Immediate Release
07/07/05
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Senate Passes Pippy Bill to Prevent Windfall Tax Hikes

Requires revenue-neutral millage rates following reassessment, unless approved in separate, public vote. 

Harrisburg – The state Senate today approved legislation sponsored by Sen. John Pippy (R-37) to protect Allegheny County taxpayers from being hit with extreme tax hikes following countywide reassessment. 

Senate Bill 726 was sent to the House of Representatives for consideration.  

"This is good news for Allegheny County taxpayers. It will prevent windfall property tax hikes and require more accountability for tax increases," said Pippy. 

The measure requires that following reassessment municipalities and school districts determine millage rates that are revenue-neutral compared to the previous year. To set a tax rate higher than the revenue-neutral rate, they would have to take a separate and specific vote in a public meeting. 

A municipality or school district that violates the limitations would have to refund with interest the excess taxes paid by homeowners. 

The Second Class County Code permits a taxing body to institute a final tax rate up to five percent greater than the amount it levied on properties the year before.  Under the proposed legislation, in cases of dire need – to purchase new equipment related to public health and safety, for example -- a political subdivision may petition the court for approval to increase the millage rate beyond the five percent that was approved via public vote. 

Local efforts to limit tax hikes following reassessments remain bogged down. Common Pleas Court ruled May 12 that Allegheny County Chief Executive Dan Onorato's property assessments plan is illegal and would create more problems for the system.

Rep. Mark Mustio (R-44) is leading the effort to pass the measure in the House of Representatives.

"Representative Mustio and I announced this legislation in May, and I'm grateful that my Senate colleagues acted to pass it so quickly," said Pippy. "Now we need to get it passed in the House and in the hands of the governor to be signed into law."

Contact: Matt Campion - 412.571.3822