Poor neighborhoods pay higher property taxes, city councilman says
Share with others:
Property reassessment will help but will not solve the problem of homeowners in poorer neighborhoods paying more than their fair share of real estate taxes, city Councilman Ricky Burgess said Friday.
He released the results of a survey of more than 11,000 Pittsburgh home sales between 2006 and 2010 that indicated properties in many of the city's poorer neighborhoods, like Esplen, are assessed for more than their fair market value.
At the same time homes in wealthier areas, like Squirrel Hill, are assessed well below their fair market value, based on sales data over the past five years.
Shawn Carter, Mr. Burgess' chief of staff, handled the number crunching for the study. Data took about a year to compile, Mr. Carter said. The information was released at a news conference.
The result has created two Pittsburghs, Mr. Burgess said. Wealthier neighborhoods get better city services although homeowners there pay proportionally lower taxes, he said. "Whenever we raise property taxes, we exacerbate this problem," he said.
He has proposed a change in the city charter that would require all future property tax increases to be approved by voters. Council's law and finance committee will take a first look at his proposed ordinance Wednesday. It calls for a referendum vote to amend the charter as soon as the May primary election.
A second amendment to the charter would require city officials to describe how money raised through a property tax increase would be used and how long the increase would be in effect.
Giving voters a voice in approving property tax increases has worked in other regions, Councilman R. Daniel Lavelle said after the news conference. "The concept is interesting, and it would help make government more transparent," he said.
If Mr. Burgess's proposal became law, council members would have to explain precisely why they needed to raise taxes, Mr. Lavelle said. "If we want to hire an additional 100 police officers, we'd have to explain the only way to do that is by raising more revenue," he said.
First Published January 8, 2011 12:00 am
