(PITTSBURGH) Jan. 14, 2013 Mayor Luke Ravenstahl today announced the City’s proposed reduced tax millage rate for 2013, and other measures and tax reduction enhancements to lessen homeowners’ property taxes, following Allegheny County’s property reassessment. The City recently received the final 2012 reassessed real estate file from Allegheny County.
The City’s property tax millage rate will be reduced by 30 percent, in proportion to the total increase in taxable value from 2002 to 2012. During that time, property values increased from $13.6 to $20.2 billion. However when existing tax reductions are taken into account, the taxable value increased from $13.6 to $16.9 billion, bringing the City’s taxable real estate amount to $126.7 million.
The Mayor will introduce legislation to City Council tomorrow morning proposing that the City’s millage rate be reduced from 10.8 to 7.56 mils. Using a real world example, a house valued at $100,000 would go from generating $1,080 in City taxes to $756, a 30 percent tax reduction.
“In addition, we must make sure we are doing everything we can to protect homeowners from being taxed out of their homes, especially our low-income seniors,” Ravenstahl said.
“There still are eligible seniors and homeowners throughout the City who are not aware of these tax relief programs, and it will be our goal to make sure we educate residents on how to lower their tax bills through more one-on-one assistance.”
For more information on the reassessment and tax relief programs or to request Homestead Exemption or Senior Tax Relief Credit forms, residents are encouraged to call 3-1-1 or visit pittsburghpa.gov/propertytaxassist. In addition, City finance employees will meet one-on-one with residents to help them fill out tax relief forms. Residents must call 3-1-1 to schedule.
Homestead Exemption (Act 50): Owner-occupied properties may receive a reduction in the value at which their property is taxed. The current exemption is $10,000 and the Mayor’s legislation proposes raising it to $15,000. Using the above example, in the past, a $100,000 house would be taxed based on a $90,000 value and under this proposal it will now be taxed on an $85,000 value.
Senior Tax Relief (Act 77): Income-eligible property owners or their spouses born before December 31, 1959, may receive a reduction in the value at which their property is taxed. Currently, the income eligible senior tax relief program exempts 30 percent of value from your property prior to the homestead exemption being applied. The Mayor proposes that this exemption be raised to 40 percent. Continuing the example, a $100,000 house would be taxed on $70,000 after the 30% reduction and under this proposal it would now be taxed at $60,000.
Monday, January 14, 2013
Office of Mayor Luke Ravenstahl
512 City County Building | 414 Grant Street
Pittsburgh, PA 15219
telephone: 412-255-2626 | facsimile: 412-255-2687