Judge's decision may put an end to 'newcomer tax' in Allegheny County
PITTSBURGH (KDKA) — An Allegheny County judge's decision may put an end to the "newcomer tax."
Allegheny County Common Pleas Judge Alan Hertzberg struck a blow Tuesday to the "newcomer tax," local school districts appealing the assessments on new home sales to reap higher property taxes. The decision could reduce the tax bill for thousands of new homebuyers.
"It's like the whack-a-mole game. They look at the sales and whack, your taxes go up. In some cases, your taxes will double and you didn't see this coming. It's just not fair," said Mike Suley, a tax assessment consultant.
Shaquille Charles and Madeline Gioffree bought their house in Wilkinsburg only to be told their taxes would more than double, from $3,500 to $9,000 a year. The couple sued the county and won.
In his ruling, Judge Hertzberg has ordered the county to roll back its assessment and others.
"I'm really excited that, one, it's going to help us out," Gioffree said. "Two, it's going to help lots of people across Allegheny County lower their taxes."
The ruling will immediately impact some 10,000 recently bought homes whose assessment values have been challenged by the school districts in a practice Hertzberg called "sales chasing".
Some new buyers who were looking at big tax increases may now actually get a tax break, including a house appealed by the Wilkinsburg School District looking at a $2,270 increase but now stands to get a $945 a year tax decrease.
This decision applies to those most recent homebuyers whose assessments have been appealed, but the judge has asked all parties back into court on Aug. 2 to discuss broader applications.
Suley said people who brought homes four and five years ago will be looking for the same tax breaks.
"They're going to expect reparations," Suley said. "There may be a class action lawsuit saying you screwed up in 2018 so fix it now."