In Pennsylvania, property taxes are the main source of income for towns, cities, and schools. These taxes help pay for important things like education, road repairs, and police services. But there’s a challenge: keeping property tax rates up to date. Political concerns or fears of increased costs sometimes stop local governments from adjusting taxes as needed.

Property taxes are based on property assessments, which estimate how much a home or building is worth. If assessments are outdated, local governments may not collect enough money to fund essential services.

What Are Property Assessments?

Property assessments determine the value of homes and other properties. Local governments use these assessments to decide how much property owners must pay in taxes. When assessments are not updated regularly, property taxes might be unfair. Some people end up paying too little, while others may pay too much. Local officials have the power to adjust taxes and order new assessments, but these changes can be unpopular, especially if they increase costs for residents.

The Impact of Outdated Assessments

Outdated property assessments can cause a big problem: a lack of money for schools, roads, and other vital services. Pennsylvania’s Constitution says that taxes should be fair for everyone, meaning all residents should share the tax burden equally. If property values are not updated, this rule can be broken. In 2009, Allegheny County had to reassess property values because their outdated assessments led to unequal taxes. After updating the assessments, the county’s property values went up, and tax rates went down.

Each county in Pennsylvania has different needs when it comes to reassessing property values. Some counties may need to reassess more often due to changing property values, while others may not need updates as frequently.

Some Counties Are Falling Behind

Reassessing property values can be costly and politically difficult. Lackawanna County had not updated its property assessments in over 50 years. In 2022, county leaders decided to reassess, but the process came with a price tag of over $5 million. Despite the cost, local officials believed it was necessary to avoid even higher costs in the future. However, the two commissioners who voted for the reassessment were not reelected, showing how unpopular these decisions can be with voters.

Disputes Over Property Taxes

When property owners disagree with their assessments, they can appeal to their county. In Allegheny County alone, there are thousands of tax appeals each year. Sometimes, these appeals are decided by the courts, which can lead to even more problems. Individual changes to property assessments don’t fix the bigger issue of outdated values. Instead, they often make the problem worse by deepening inequalities. In some cases, schools have even sued counties to push for a full reassessment, as they risk losing millions in tax revenue.

Why Lawmakers Have Avoided Reassessments

Many elected officials are hesitant to support property reassessments because of the potential political backlash. Reassessments can lead to higher tax bills or lower home values, and voters may not like either outcome. To avoid the issue, lawmakers often steer clear of the topic. However, some politicians, like State Senator Wayne Fontana, believe that reassessments should be done regularly to keep taxes fair. Fontana has suggested that the state legislature step in and make reassessments a scheduled requirement, taking politics out of the process.

In conclusion, keeping property assessments up to date is crucial for ensuring fair taxes and funding essential services in Pennsylvania. However, the political and financial costs of reassessments make it a complicated issue that many leaders are hesitant to address.