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City employees in Scranton who earlier this month saw their pay slashed to paid minimum wage over a dispute between city leaders will soon get the money owed them, plus interest.
Last Friday, the mayor and city council, all of whom are Democrats, reached agreement on a financial recovery plan that among other things calls for a minimum 33 percent increase in real estate taxes. Pending state approval, the plan paves the way for Scranton to almost immediately receive more than $2 million through in a state loan and a grant.
The board of county commissioners in each county is empowered to set the county predetermined ratio. This ratio of assessed to market value may not exceed 100 percent. The county predetermined ratio is then applied to the base year value or the current market year value to calculate the assessed value of properties throughout the county. An assessment, then, is a percentage of the market value of the property. The assessment is the foundation which the taxing authorities use to determine the amount of real estate taxes based on their tax rates.
For example: If the current market value or base year value of Property A is $100,000 and the county’s predetermined ratio is 40 percent, then the assessed value is $40,000 [$100,000 x 40 percent].
Hypothetically, the county may levy five mills for the real estate tax; the township in which the property is located may levy ten mills for the real estate tax; and the coterminous school district may levy 20 mills for the real estate tax. The owner of Property A would, therefore, be liable to pay real estate taxes in the amounts of $200 to the county [$40,000 x .005], $400 to the township [$40,000 x .01], and $800 to the school district [$40,000 x .02]. This is the general method by which property is valued and assessed throughout the Commonwealth.
MARKET VALUE X COUNTY PREDETERMINED RATIO = ASSESSMENT ASSESSMENT X MILLAGE RATE = TAX BILL
Originally posted by timetothink
Lackawanna County must be even lower because a $100,000 house assesses at $11,000? Then the millage rates are low.
My aunt pays $1500 for 2 acres with 2 houses on it....PER YEAR!
So when they say a 25% increase in taxes it's nothing! At least compared to what of us pay. I pay $10,000 a year for ONE house on a 1/4 acre.
Originally posted by MidnightTide
there is only one source of revenue left. The average person just trying to get by.
Just think, the total tax rate during the American Revolution was 2%.
SCRANTON, Pa. -- A tentative recovery plan for the financially struggling city of Scranton includes a commuter tax and increased contributions from nonprofits as part of the measures intended to increase revenue.
The plan submitted Friday to the state Department of Community and Economic Development would also increase real estate taxes 33 percent and establish a sales tax and raise other fees while cutting city department budgets.
Scranton's financial woes gained national attention last month when Mayor Chris Doherty temporarily cut almost 400 workers' pay to the federal minimum wage of $7.25 per hour because the city didn't have cash on hand to meet its payroll obligations.