The Pittsburgh Public Schools district is currently navigating a major financial crisis, exacerbated by the coronavirus pandemic and ongoing shifts in property assessments. The district has had to refund over $10 million in real estate revenue due to downtown office buildings successfully appealing their tax assessments—a figure that is anticipated to double to $20 million. This financial strain has led to considerations of taking Allegheny County to court to demand a countywide property reassessment.
Central to this issue is the application of the Common Level Ratio, a state mechanism that aligns current market values with those from previous assessments. This adjustment has particularly benefitted high-value properties, enabling them to secure significantly lower assessments through legal appeals. This trend has been especially pronounced in Downtown Pittsburgh, where the shift to remote work has decreased office occupancy. As a result, major property owners have secured lower assessments, significantly diminishing the revenue available to the school district and other local taxing entities.
The potential lawsuit would argue that the county’s current assessment system violates the uniformity clause of the state constitution, which mandates that all local and state taxes be uniformly applied across all taxpayers or properties. The lack of regular reassessments has led to a skewed system that disproportionately impacts lower-income taxpayers and favors owners of higher-value properties, particularly those located in downtown regions. While legal action is being considered, there is also a push for discussions with County Executive Sara Innamorato about undertaking a voluntary reassessment. This approach could potentially offer a more expedient and conflict-free solution, avoiding the costs and delays associated with legal proceedings.
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