Once the municipality has set the “equalizing millage,” the municipality is permitted to increase the “equalizing millage” by up to 5%. This is called the “equalizing millage” – and it is this millage calculation that prevents a windfall.Ģ. The municipality must set the tax millage based on the reassessed property values at a rate that yields the same tax revenue as the municipality received in the year prior to the reassessment. The intent of the law is to prohibit hidden tax increases. Municipalities in Allegheny County are subject to the 2005 amendments to the Second Class County Code, 16 P.S. According to these anti-windfall provisions, a political subdivision must reduce its tax rate so that the property taxes collected in 2013 will roughly equal to the total amount of property taxes received in 2012. To protect taxpayers from the “backdoor” tax increases that can occur when property values rise after a reassessment, state and local law limits the ability of taxing bodies to take such windfalls.
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