Bob Logue

Post-Gazette Favors Continuation of Failed Property Tax System From Which They Benefit

In an editorial this past week, the Pittsburgh Post-Gazette continued it’s drumbeat of support for continuing the Property Tax system in Pennsylvania, and blasted as unrealistic the S.T.O.P. (Primary Residence Protection Plan). The P-G has repeatedly backed this current fatally flawed system with comments akin to ‘fix the system, don’t abolish it.’

What the Post Gazette fails to do, is point out their vested interest in the continuation of the property tax system. Not once has the Post Gazette had the integrity to admit that the newspaper has benefited greatly from millions of dollars in sheriff sale legal ads when homes are put up for sale by the Allegheny County Sheriff’s Office for non payment of taxes, and mortgage foreclosure (which also includes non payment of property tax escrow payments.)

In 2004 alone, the Post Gazette received over $1.2 million in Allegheny County sheriff sale legal ads. And tens of thousands more in tax sale ads placed by the City of Pittsburgh and the Pittsburgh Public Schools.

It is not unethical to accept such ads. But, it is unethical not to address in their editorials favoring continuation of the property tax system that the P-G reaps this huge windfall.

The editorial this week also failed to note that Allegheny County has now ‘invested’ some $30+ million dollars in trying to fix the broken property tax system. And, yet it remains broken. I agree with County Executive Onorato who states, “the system is broken and it cannot be fixed!”

The stress placed on homeowners each time a new round of assessments occurs is harmful to the health and wellbeing of our people—especially our seniors and those with health problems. The corrupt system favors the wealthy who can afford to hire professionals to fight for a lower assessment or appeal to Common Pleas Court, while the lower income folks cannot afford to do the same. The system not only takes people’s homes through sheriff sale, but heaps on the added punishment of taking most or all of the equity the homeowner had accrued far beyond the penalty and costs the government says is owed.

The Post-Gazette says our STOP plan is unrealistic. Yet the STOP plan does this:

Rebuilds communities; cuts the size of government by stopping the assessment\reassessment of all primary residences (homesteads\farmsteads) –In Allegheny County their $7 million dollar assessment office budget could likely be cut by one-half to 2/3rds saving at least $3 million in our county alone); creates tens of thousands of jobs in banking, real estate, home building and remodeling and associated trades; would stop the outmigration of our people; would boost the economy in every knook and cranny of Pennsylvania; saves the Lottery Fund 63 million a year by eliminating the property tax rebate program which means the money could provide other benefits to seniors through the rent rebate program or PACE. It encourages private reinvestment in our older housing stock in our cities and towns since the person purchasing and improving the home would not immediately be penalized with higher property taxes. Makes it possible for more women and minority citizens to purchase homes since their monthly payments would be lower without a tax escrow payment; helps more families build wealth through home ownership; encourages people to buy homes or build homes here since there would no longer be any fear of how much the tax assessment and property taxes might grow in the future; and since ownership changes attitude, encouraging more home ownership will likely have other positive benefits to our communities.

We propose abolishment of all property taxes on primary residences only. That means, under our plan the school district, county and municipal governments would continue to have a base of industrial and commercial property taxes.

We suggested replacing the lost revenue with an increase in the sales tax by 1%--which people can control by wise purchasing; increasing the state income tax by 1-1/2 percent (deductible for those who itemize on their federal income tax)-- and for a family of four under $30,000 income they pay no state income tax so it would not hurt the lower income folks; and a 2% realty transfer tax increase payable only when purchasing a property—negotiable with the seller. We haven’t found too many people who said they wouldn’t trade a one time 2% realty transfer tax at the time of purchase, for a property tax-free home forever. Our replacement tax proposals are not etched in stone. We chose them because they do not require a sizable bureaucracy to collect and they spread the cost of government more fairly over a broader population—including out of state folks visiting Pennsylvania.

We have asked for hearings on our plan and have been ignored. Perhaps the largest petition drive in Pennsylvania history has produced 112,000 signatures of people who favor abolishment of all property taxes on homesteads and farmsteads and these 112,000 citizens’ wishes are being ignored by the governor and legislative leaders.

We do NOT believe property tax reduction plans are tax reform. What goes down…will very likely go right back up later. We proposed a constitutional amendment to abolish all property taxes on homesteads and farmsteads (primary residences) so that it could not be reinstated later without another constitutional amendment requiring the vote of the citizens. We do not believe any tax plan that abolishes just the school tax and keeps the assessment\reassessment\harassment system in place would make Pennsylvania attractive to people thinking of staying here…or moving here.

People don’t just hate the property tax system. They despise assessments, reassessments, hearings and the uncertainty of property taxes. They know it is impossible to correctly and fairly assess over a half million properties.

How many more thousands of people will move away, how many more thousands of older homes will become abandoned (the pace is 350 a year just in the city of Pittsburgh alone); how many more schools will close, and businesses will shutdown for lack of customers before our governor and legislative leaders stop rearranging the deck chairs on the Titanic with their complex and convoluted plans and give true property tax reform a chance.

Bob Logue, 1291 Prospect Road, Pittsburgh, PA 15227
E-mail: ucblogue@verizon.net

Visitor Comments:

Dave in PGH says :
Ah, the Post Gazette, a fine paper that has yet to find a tax increase it couldn't endorse.

Each time taxes go up, the editorial board comes out with opinion about how this is a bitter pill, but one that will take us to prosperity.

After they doubled our property taxes, after they increased the Wage taxes, after jacked up the occupational tax and grabbed it all in January instead of spreading the pain out over a year. The support for increasing the sales tax to fund stadiums, etc etc ad nauseum.

Still waiting for that prosperity boys!!!!!!
Anonymous says :
The Post Gazette won't publish letters on STOP and the Tribune Review is getting to be the same. Big bucks in advertising sheriff sales. Ha ha the Tribune cut their prices and took the millons from the Post Gazette. Hope its more than a milon bucks.

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