7/28/2019 Centre County Commissioners Reply to When is Next County Real Estate Reassessment

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www.statecollegewatchdog.com This is a scanned extract of originalletters, salutations and amenities omitted.

Below is the Centre County Commissioners response to Watchdogs letter: will therebe a Centre County Reassessment before 2020?http://www.statecollegewatchdog.com/tax-reassessment The commissionerspresent three reasons why reassessment is not likely during or several years after theSCASD High School Debt Referendum.

Among the 67 Pennsylvania counties (1) Centre ranks 8th best for tax fairness; (2)statistical analysis referred to variously as CLR, COD, PRD (defined in the lettersbelow) substantiate the countys tax uniformity, and (3) county wide tax reassessmentwould cost millions of dollars.

Using CLR, COD, and PRD as standards of fairness is unique to the PennsylvaniaState Tax Equalization Board. For a more mathematically accurate interpretation of thePennsylvania property tax fairness see: Pennsylvanias System for PropertyValuation and Reassessment, General Assembly, (2010).http://lbfc.legis.state.pa.us/reports/2010/48.PDF

Centre County Commissioners Reply to When is NextCounty Real Estate Reassessment?

BOARD OF COMMISSIONERSSTEVEN G. DERSHEM, Chair

C. CHRIS EXARCOSMICHAEL PIPEJune 25, 2013

[From Commissioner Dershem]

Thank you for your recent correspondence regarding reassessment in Centre County. Ihave spoken with Commissioner Exarchos and our Assessment Department extensivelyabout your concerns and I hope that I can answer some of your questions and clarifymy viewpoint.

7/28/2019 Centre County Commissioners Reply to When is Next County Real Estate Reassessment

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I am very aware of the importance of fairness and consistency in regard to real estatetaxes. This is especially true when cuts in state and federal program funding putspressure on school districts and local governments to eye additional real estate taxationto cover these shortfalls. For the record, shifting the traditional tax burden down to localgovernment seems to me as incredibly unfair, especially in regard to mandated andentitled services.

Recently our Assessment Department provided the Board of Commissioners with areport in regard to tax uniformity in Centre County. Between that report and subsequentdiscussions, the board addressed the Coefficient of Dispersion (COD). Centre Countyranks 8th in the Commonwealth by using COD as a measure of tax fairness. COD,along with Price-Related Differential (PRD), is a solid measure of uniformity ofassessment; not Common-Level Ratio (CLR), as is commonly believed. CentreCounty's PFD (sic PRD) also falls within acceptable limits.

I have taken into consideration that the last reassessment was performed almost twentyyears ago, but, at this time, and given current facts, I cannot support a county-widereassessment. When legislative or statistical measures indicate need for areassessment for Centre County in the future, I am certain that a strict review andanalysis of our current system will precede any action. Fairness and uniformity shouldcontinue to be the cornerstones of any future reassessment in our county.

I do agree that a predetermined ratio of 100% would be easier to understand andeliminate the "voodoo" that surrounds the whole assessment program. As confusing asthe 50% ratio may be, before that they used 25%!

It is very difficult to determine how a new real estate tax assessment of Centre Countywould impact property owners in each region of the county.

Signed: Steven G. Dershem, Commissioner, Chairman

[From Commissioner Exarcos]

I recognize the ever increasing burden property taxes place upon our taxpayers andhave made great efforts to alleviate that burden through cost control measures andseeking more efficient business practices.

Uniformity and fairness is paramount when discussing the issue of real estate taxes. Areport was presented recently to the Centre County Board of Commissioners onassessment uniformity in Centre County. In that report the importance of the coefficientof dispersion [COD] was discussed. The coefficient of dispersion is a widely acceptedstatistical indicator of uniformity in tax assessments. It is the average deviation from themedian assessed value expressed as a percentage. Centre County ranks number eightout of the 67 counties in that category. The other important statistic when discussinguniformity is the price related differential [PRD]. This is an indicator of inequity betweenhigh value and low value properties. Centre Countys price related differential falls

7/28/2019 Centre County Commissioners Reply to When is Next County Real Estate Reassessment

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within the accepted limits indicating uniformity.

I recognize that it has been eighteen years since the last reassessment in CentreCounty and there are areas in the County, which have appreciated more than others.However, as Commissioners we are obligated to act in the best interest of all residentsof Centre County. After reviewing the issue of uniformity of assessments within thecounty and considering the volatility in the real estate market and not knowing if thestate legislature will act on the issue of reassessment and what mandates andprocedures may result from that action, I do not feel it is in the best interest of theresidents of Centre County to authorize the expenditure of potentially millions of dollarsfor a county wide reassessment given the facts before me now.

The goal of a county wide reassessment must not change from the goal we have now,namely uniformity and fairness. Taxes may increase or may decrease depending on

the particular property however; our goals of uniformity and fairness cannot change.

As you mentioned, millage rates will be adjusted by each taxing authority to fall withinthe mandated guidelines and I agree a predetermined ratio of 100% will make thisprocess more transparent than the current 50%.

Again, thank you for your concern and be assured I will continue to monitor ourassessment program and remain up to date on legislative and market developments.

Signed: Chris Exarchos, Commissioner

[From Commissioner Pipe]

All three commissioners are on record saying now is not the time for a reassessment.Therefore, I do not foresee a countywide reassessment any time before January 2016.However, I can say with a high degree of certainly that there will eventually be acountywide reassessment either due to a mandate from the Commonwealth or adecision made by the commissioners. If I happen to be a commissioner when eitheraction occurs, I hope to conduct the process in a transparent and thoughtful manner.

Signed: Michael Pipe, Commissioner