Chesco property taxes for 2008-2009 set

As property tax bills are being received across the county, we felt it was a good time to do a quick review of some of the changes in taxes from across the county.

First, this was the year that those who originally applied for (and received) a homestead or farmstead exemption would see a reduction of their property taxes. The reduction is applied as a credit against the home’s assessed value. So, if a home was assessed at $200,000, a homeowner might see a $10,000 credit against that assessment, leading to a total of $190,000 being applied to the district’s millage rate.  What this means is that, depending on your home’s assessed value, whether your home was an approved homestead or farmstead, and the amount of your district’s tax increase (if any), you might have actually seen a reduction in taxes from last year to this year. However, some district’s tax increases far exceeded any “relief” presented by the state.

Two districts held the line on taxes (Avon Grove and Octorara), with a zero increase. At the other end of the spectrum, five districts proposed increases that exceeded the maximum allowed under Act 1, thus requiring either a voter referendum or (more likely) approval of an exemption by the Pennsylvania Department of Education. The worst of these was Oxford, which proposed a whopping 14% tax increase.

Below is a summary of each Chester County school district, its millage rate, percent tax increase, and the amount of tax relief estimated to be available to approved homesteads from gambling revenue. We’ve also provided the Act 1 index for each district and calculated the total percentage tax increase on a home assessed at $300,000 after considering both the district’s change in taxes as well as the tax relief provided under Act 1. Homes assessed at less than $300,000 would realize a greater benefit (and a lower tax increase or greater tax decrease). Homes assessed at more than $300,000, or which do not qualify for a homestead/farmstead exclusion, would have a higher tax increase or lower tax decrease.

School District Millage Tax Increase Act 1 Index Est Act 1 Relief Net chg on $300k home
Avon Grove 23.82 0.0% 5.9% $356 -5.0%
Coatesville 26.5 3.1% 5.5% $273 -0.4%
Downingtown 24.85 3.33% 4.4% $210 0.4%
Great Valley 17.92 2.7% 4.4% $125 0.3%
Kennett 23.14 5.4% 4.4% $238 1.8%
Octorara 31.61 0.0% 5.4% $284 -3.0%
Owen J Roberts 24.925 3.9% 4.4% $174 1.5%
Oxford 28.6865 14.0% 5.7% $290 10.2%
Phoenixville 25.89 5.93% 4.4% $163 3.7%
T/E 16.97 4.4% 4.4% $181 0.7%
Unionville-Chadds Ford 21.57 5.27% 4.4% $233 1.5%
West Chester 16.85 6.7% 4.4% $141 3.7%

Just as a footnote to this table, three Chester County districts (Octorara, Unionville-Chadds Ford, and West Chester) also have district residents in neighboring counties. The information presented above applies only to the Chester County residents.

In doing this research we also came across a few interesting points…

  • Avon Grove has gone five years without a tax increase
  • Coatesville’s increase is its first in four years
  • Downingtown’s increase is its lowest in 13 years

We look forward to your comments and observations about this summary of Chester County school property taxes.

“Save Our Homes” Rally

On Monday, June 2, 2008, a group of more than 500 concerned taxpayers and lawmakers from across the state of Pennsylvania gathered in the Capitol Rotunda in Harrisburg, PA, to demand action from the state legislature on property tax elimination. This coalition was one of the largest groups ever to rally in the state capitol, and they were insistent on having their voices heard as cries of “Save our homes!” carried through the building.

Speakers at the rally discussed House Bill 1275, the School Property Tax Elimination Act, which would completely eliminate school property taxes and earned income taxes that go to school funding. The bill, introduced in the fall of 2007, was stalled in committee and the PA House has not yet voted for it as a stand-alone bill. Since it was last debated (as an amendment to another bill), some concerns addressed by those in the House have been addressed, and the fiscal soundness of the bill has been confirmed by independent accountants.

In short, there’s no reason for lawmakers to hold back and this point and read the bill out of committee for discussion and vote by the full House. Let’s hope they heard the hundreds of taxpayers who came to the capitol on June 2, and the thousands more who could not make the journey, but are fighting for true property tax reform at home.

For full media coverage of the event, visit the following link:

http://mysite.verizon.net/drbsr/PTCCWeb/rally060208.htm

Welcome!

Thanks for finding us here at the Chesco (that’s Chester County, Pennsylvania) Taxpayer Alert blog. We’re working on getting this blog up and running so that we can bring you the latest news on issues important to taxpayers, voters, and residents in and around Chester County, Pennsylvania.

We appreciate you stopping by and hope you come back soon! Our first post (after this one) will provide some coverage of Monday’s property tax rally in Harrisburg.



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