A PA county conducts a reassessment and all assessed values double. The county currently levies 10 mills and collects $20 million in property tax revenue. To maintain revenue neutrality after the reassessment, what should the county set its new millage rate to?
Correct Answer
B) 5 mills
If assessed values double, the county must halve the millage rate to maintain the same revenue. New millage = 10 / 2 = 5 mills. Verification: If total assessed values were $2 billion (to generate $20M at 10 mills), they become $4 billion. $4 billion × 5 / 1,000 = $20 million.
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More Pa Property Tax Assessment Appeals Questions
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A PA homeowner's property has an assessed value of $160,000 and a total combined millage rate of 40 mills from all three taxing bodies. The homeowner wants to estimate their annual property tax. Which statement is correct?
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Under PA law, a Keystone Opportunity Zone (KOZ) designation provides tax benefits to businesses and residents within the zone. When a KOZ designation expires, what happens to the property taxes for properties in the former zone?