News

Luzerne county reassessment

January 6, 2009

Firm: Taxes to be below early estimate

‘Break-even’ rates averaging 12 percent lower than what was used for estimated bills.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

Luzerne County property owners may be pleasantly surprised if they’re still using the original tax bill estimates sent by the reassessment company, because those figures were too high, new records show.

The reassessment company, 21st Century Appraisals Inc., recently announced that the new “break-even” millage rates are averaging about 12 percent less than the rates the company used to calculate the estimated tax bills.

The break-even millage rates were based on taxing bodies collecting the same amount of property tax revenue as they did before reassessment.

Taxing bodies may opt to collect 10 percent more in the first year after reassessment. The county opted to seek the increase, as did some of the 76 municipalities. It’s unclear what will happen with school districts – which levy the largest portion of the bill -- because school boards don’t have to finalize their budgets until June.

“Even if some taxing bodies find it necessary to raise tax revenue up to the 10 percent cap, it would still represent average tax bills less than forecast on the original change-of-assessment notices,” 21st Century representative Tim Barr told county officials in a recent e-mail.

Barr has said that 21st Century’s original estimates ended up being too high, in part, because the company projected $4 billion in reductions would be granted due to corrections and formal assessment appeals.

Instead, about $1.75 billion in reductions were granted, records show.

The combined assessed value of all properties in the county was $21.6 billion when the change-of-assessment notices were mailed. The value is currently around $19.8 billion.

To understand the pocketbook impact of the new calculations, consider a property assessed at $200,000 in Freeland.

21st Century’s original estimate would have projected a $3,079 school/county/municipal property tax bill for that property.

However, the fresh millage calculations show the bill could not exceed $2,870, or $209 less. That maximum presumes that all three taxing bodies are seeking the 10 percent revenue increase.

If none of the taxing bodies sought a revenue increase, that taxpayer would pay about $2,609, according to the break-even millage rate.

Another example: The bill for that same property in Avoca would have been originally estimated at $3,719. The new figures show the maximum bill would be $3,638, or $81 less.

County officials included the tax bill estimates with the assessment notices to help property owners plan their budgets.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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