To the Editor:
This past week, State Rep. Tim Seip won House passage of his two bills that would ban "spot appeals" of assessments. This is a huge problem here in Schuylkill County, PA. The bills (H.B.s 1438 and 1439) would ban the practice.
Seip was instrumental in organizing a hearing in February to bring much needed attention to this issue. At Seip's request, the House Local Government Committee held a hearing on the bills at Penn State Schuylkill Campus in Schuylkill Haven. The committee heard testimony from an affected property owner from the area and experts on the issue.
Two of the most moving testimonies were given by Attorney Sud Patel (who has been personally affected by this issue), and County Administrator Darlene Dolzani. Dolzani passionately urged the lawmakers to stop this unfair practice that—in effect—penalizes those who move while not affecting homeowners who stay put.
What this has done to our neighborhoods is just not right. Property owners with similar homes in a single neighborhood may be paying widely different taxes. I know of one homeowner paying about $3400 in taxes, while the neighbors to the left and right are paying over $6000. The difference? The homeowner in the middle has not moved in the past few years, while the other neighbors moved in the past 3 years.
Pennsylvania law states taxpayers must be taxed “uniformly” (the principle of uniformity). There is no uniformity in Schuylkill County’s property taxes. "These spot appeals are initiated only because a property is sold, despite the fact that a similar or identical property nearby may continue to be taxed at a lower rate," Seip said. "Singling out individual homeowners like that is wrong. I hope the Senate will join the House in passing these bills so they can go to the governor's desk."
As a real estate broker, this property tax issue affects my business. Housing sales in general are down from 2007 to 2008, due to a number of reasons, including tighter financing, energy jitters and general nervousness amongst buyers. It doesn’t help when we calculate a property’s current taxes and then show the buyer what their taxes may be if their property assessment is appealed and the school district wins. In certain school districts it has become extremely difficult to sell properties when we estimate the property’s taxes could double or triple after the sale.
As a Schuylkill County property owner, this affects me personally, as well. If I was in the market to buy or sell right now, I know I’d be hesitant to purchase in an area where my taxes might skyrocket after the sale.
School districts need more revenue—but taxing a very narrow portion of the community—those who move—is not right. This is not a solution to their budget woes.
Hopefully, these bills will move through the Senate successfully and eventually become law. Then we can tackle the next step of helping school districts fund their budgets in a more fair method, one which spreads the burden amongst all members of the community, and not a select few.
Erica Ramus, Broker / Owner REALTY EXECUTIVES
www.move2pennsylvania.com
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Erica Ramus is Broker/Owner of Realty Executives in Pottsville, PA.
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