The outgoing Board of County Commissioners in Butler County plan on enacting a 2016 budget that includes a 3 mill hike in property tax millage. Based on the current 2015 millage of 24.63 mills, that would take the County’s millage rate to 27.63 mills. Comments from one of the members of the incoming Board indicate that the budget would be reopened one they are seated.
According to the most recent version of the Pennsylvania Tax Manual third through eighth class counties are limited to a maximum of 25 mills for general purposes but can levy an additional five mills with court approval. There is no limit on debt service millage. Based on its population Butler is classified as a County of the Fourth Class.
If we look at the County’s property taxes over the last decade (2005-2014) from the County’s Comprehensive Annual Financial Report there were several millage changes in recent years:
- In 2008, the County’s millage rate was increased 9% (from 27.5 mills to 30 mills) which resulted in an additional $3.5 million in taxes collected in the 2008 Fiscal Year.
- In 2009, the County increased its pre-determined ratio (the ratio of assessed to actual value) from 75% of the 1969 value to 100% of the 1969 value. Taxable property value increased from $1.1 billion to $1.6 billion and the millage was reduced from 30 mills to 23.63 mills (21% reduction) but because the County was allowed a 5% windfall due to state law at the time taxes collected rose $2.1 million.
- Remaining at the 100% pre-determined ratio, millage was raised 4% in 2014 from 23.63 mills to 24.63 mills and taxes collected increased $2.2 million.
The cumulative effect of those change–from 2007 prior to the first millage hike to 2014 following the most recent one–has been a 33% increase in property taxes collected ($31 million to $41 million).
