Tax break for elderly: Harmar may use Act 77 for discount

For some older property owners reeling from the sticker shock of Allegheny County assessment notices, there is a little-known tax relief program that could give them a break on their tax bills.

The Allegheny County Senior Citizens Property Tax Relief Program - also known as Act 77 - offers a 25 percent discount on county tax bills and might offer another discount on municipal tax bills.

To qualify, property owners must be 60 or older, own their homes for more than 10 years and have an income of $30,000 per year or less.

Last year, about 45,000 county residents saved a total of $3.7 million in county property taxes through the program.

The break was welcome relief to Ed Borowski of Pine Street in the Natrona section of Harrison. Borowski appealed his 2001 assessment and won a reduction, but still saw an increase in his property taxes.

"It's a good thing," he said. "It'd be better if I could get it for my township taxes and my school taxes, too."

Borowski's neighbor, Bob Siewczak, also hopes the program is extended to local property taxes because those make up the bulk of property tax bills.

"All of my neighbors are retired," Siewczak said. "They're senior citizens. They need some relief."

Harmar might be one of the first municipalities to apply the discount to local taxes. Supervisors plan to vote Feb. 18 on a proposal to give a 10 percent break on township property taxes.

Supervisor Bob Siebert said municipalities have a legal and moral obligation to give the tax break, particularly in the wake of countywide reassessment that is driving up home values and taxes.

Created along with the Regional Asset District in 1994, the tax reliefmeasure was supposed to be applied uniformly by all municipalities who receive RAD money for cultural, educational and community projects. Many put the law on the books eight years ago, but few are actually giving their property owners a break, Siebert said.

"For some reason or other, there were a lot of municipalities who didn't enact this program," he said. "There are probably many retired politicians who think their people are getting this relief, but they aren't."

Mike Roach, who coordinates the program for the Allegheny County Treasurer's office said many municipalities have not filed proper paperwork or applied the tax break when drafting their tax bills.

Exactly how many municipalities give the discount is unknown, Roach said. When officials from the treasurer's office tried to compile a list last year, many municipalities refused to say whether they were giving the tax break, he said.

Many may be reluctant to offer the discount because money lost in revenue from senior citizens who qualify would have to be made up from other sources, possibly requiring a millage increase.

Siebert admits he doesn't know how much the 10 percent break for qualifying homeowners will cost Harmar. He said the increase in revenue that comes from the rising aggregate assessment of the township should more than make up for it, however.

"Let's lead by example," Siebert said. "We're going to do something to get relief to these people."