Reassessment discrepancy affecting tax rate

After determining what they thought would be a fair millage, McCandless officials now find themselves recalculating the town's real estate tax rate.

Town officials in December voted to approve a $16.9 million municipal budget that set the 2001 tax rate in McCandless at 1.5 mills.

In order to determine the millage this year, McCandless officials had to rely on preliminary assessment numbers provided by Sabre Systems & Service Inc., the company that handled the Allegheny County reassessment process.

In January, however, town officials learned that Sabre Systems' preliminary number was more than $300 million higher than it should have been, town Manager Tobias Cordek said.

In one case, Cordek said, a home that should have been appraised at about $200,000 was listed as being appraised at $11 million.

Because of the discrepancy, Cordek said, the town council will be forced to raise the millage rate, perhaps to 1.82 mills.

With a 1.5-mill tax rate, the owner of a house appraised at $100,000 will pay $150 in real estate taxes to the town in 2001.

With a 1.82-mill tax rate, the owner of a home appraised at $100,000 will pay $182 in property taxes to McCandless this year.

Because of the new Allegheny County assessments, town officials have the option to collect an additional 5 percent in real estate taxes, compared to 2000. McCandless officials decided against going after the extra cash because they said the town did not need it.

The municipality, however, still needs to collect enough money to cover expenses.

Councilman Bill Ries said that is why the council likely will adjust the 2001 tax rate.

'We can't take a loss,' Ries said. 'We have to at least break even.'

Cordek said that he and other town officials plan to go through Sabre Systems' assessment property by property.

He said the town has until July - when tax bills need to be sent out - to determine a final tax rate.

Waiting until then to determine the millage rate also will give town officials time to see how many residents appeal their reassessments. Residents have until April 2 to appeal.

Last year, town officials were to collect almost $3 million in real estate taxes. This year's budget calls for the same amount to be collected.

Ashley Gerwig can be reached at agerwig@tribweb.com or (724) 779-7112.