The Herald, Sharon, Pa.

Local News

March 16, 2007

Sharon council mulls land value tax after presentation by economics official

By Courtney Anderson

SHARON — Would a land value tax help fix Sharon’s problems?

An expert thinks so and Thursday presented the findings of his study to council members who said they’ll consider it.

Joshua Vincent, executive director of the Center for the Study of Economics in Philadelphia, said the taxing system, which reduces taxes on buildings and raises rates on land, would be revenue neutral for the city but would save money for about 63 percent of homeowners.

That number is one of the better results he’s ever measured for a community, he said.

Vincent recommended that Sharon set rates at about 95 mills 94.942 for land and about 30.4 mills 30.375 for buildings to start. The city’s current tax rate is 40.5 mills. A mill is $1 for every $1,000 of a property’s 1970 market value.

About 10 percent of the land in Sharon is vacant, Vincent said, and valued at about $1.2 million. This is a high percentage and not healthy for the city, he said.

Switching to a land value tax would reward people who keep their buildings maintained and encourage construction, said Vincent. And it would discourage people who don’t live in the city but own vacant lots to either do something with them or sell them.

“It puts pressure on the bad actors,” Vincent said.

The current system penalizes people who improve their property by taxing the value of the buildings, said Vincent.

According to Vincent’s study, there are 6,712 taxable parcels in Sharon and the city currently gets 15.7 percent of its revenue from land and 84.7 percent from building taxes. A land value tax system would shift the burden to 36.7 percent of revenue from land.

This makes Sharon, with the highest millage in the county, unable to compete with other communities, he said. Greenville, the community with the second-highest tax rate, levies 23 mills of tax on real estate, about half of Sharon’s rate.

Other positives for a land value tax are that it’s stable. It doesn’t rely on population or construction. It also discourages sprawl and speculation as well, said Vincent’s study.

Most commercial properties would see a decrease in their tax bill, Vincent said, which doesn’t usually happen.

Sharon’s in a unique situation because the school district is one of only 12 in the state that can also switch to a land value tax.

Mayor Bob Lucas said the center’s studies don’t always show a municipality should switch to the land value tax.

“Failing maybe Harrisburg coming to the rescue, you have control over your destiny,” Vincent said, alluding to the possibility that the city could become an Act 47 distressed community.

Council member Jennifer Barborak said she wants to look into it and President Fred Hoffman said they will go over some specifics.

Because the public gets scared any time a tax change is discussed, council member Frank Connelly said the issue will have to be explained well.

Text Only
Local News
  • Ominous clouds Storms rumble through parts of Mercer County

    Temperatures dropped nearly 20 degrees Sunday as storms rumbled through parts of Mercer County in the afternoon and again in the evening. Some areas experienced high gusting winds during the early storms. The later storms were less windy, but dumped a lot of rain in a short span in the Shenango Valley as well as outlying areas. Temperatures are forecast for in the 90s on Memorial Day, with a chance of storms in the afternoon. Check out Sunday's Herald both in print and here for more details.

     

     

    May 27, 2012 1 Photo

  • Board wants pay freeze


    Sharon City School District officials are asking staff to take a wage freeze for the second year in a row to help cover a $1.9 million gap in the 2012-2013 budget in the face of further funding cuts by the state.

    May 27, 2012

  • City taps Pa. grant for downtown facelift


    The colorful flower baskets hanging in downtown Sharon are just one of the planted seeds officials hope will help the once-bustling area grow.

    May 27, 2012

  • pension graphic Pension bomb ticking for city

    The city of Sharon pays more people who don’t work there anymore than folks who still do.

    And the amount of money the city must pay to the retirees is going up about $250,000 next year, a hike that creates more problems for the cash-strapped town, City Manager Scott Andrejchak said.

    May 26, 2012 1 Photo

  • Church softball league to Mormons: You’re out!

    The Grove City Area Church Softball League’s decision to exclude a Mormon team from Slippery Rock has sparked a controversy far beyond the local sandlot.

    May 26, 2012

  • Fired bus driver files lawsuit

    A Mercer County woman fired from her job as a school bus driver over a 25-year-old drug conviction filed a federal civil rights lawsuit against a state education official and Jamestown Area School District.

    May 26, 2012

  • Recycling program a bit too popular

    The  county’s effort at going green by encouraging recycling in rural areas has been a tremendous success by most accounts, but isn’t without a few glitches. In Wilmington Township, residents often only have a window of a few minutes to get cardboard recyclables in before the bin is full, prompting a discussion among Mercer County Commissioners Wednesday morning.

    May 25, 2012

  • District will tap reserve fund

    Reynolds school directors plan to fill a $374,567 hole in the 2012-2013 budget with money from the district’s fund balance.

    May 25, 2012

  • School board mulls change to sports chaperone policy

    In order to comply with the Pennsylvania Interscholastic Athletic Association, the Sharpsville Area School Board is looking to adjust a chaperone policy it implemented six months ago.

    May 25, 2012

  • Afternoon crash hurts 3 high school students

    Three Jamestown High School students were injured – one seriously – when their pickup left a roadway in southwest Crawford County and crashed into a tree Tuesday afternoon.

    May 24, 2012