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Tax Axe Might Fall in Peters

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The Washington County community of Peters Township (population 20.3k, up from 17.5k in the 2000 Census count) could be delivering an early Christmas gift to its residents: a property tax cut of 1 mill to 13 mills (Washington County’s base year assessment year is 1985 and its pre-determined ratio is 25% of market value).

According to the township’s audited financial statement its millage rate remained at 12 through most of the decade while the rates for the Peters Township School District and Washington County increased. Its per capita debt level fell from $388 in 2000 to $351 in 2009. Based on population growth and audited expenditures per capita spending grew 20% over the decade (by way of comparison the CPI for the Pittsburgh area grew 27%).

Here’s what makes the impact of a tax cut in Peters significant, especially in comparison with Allegheny County. As an August 2007 Policy Brief illustrated county-to-county level taxes in Washington were much lower than Allegheny-per capita collections were $127 in Washington while they were $212 in Allegheny. On a per dollar of personal income basis the advantage was slanted more toward Washington, and the burden of school taxes was much higher on average in Allegheny County. A tax cut in a popular residential destination should increase the pressure on other communities to do the same.

So at a time when tax cuts are rare (only 8 municipalities and 1 school district in Allegheny County had a lower millage rate in 2010 than they had in 2003) if Peters Township follows through they are to be congratulated.

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