Addressing Property Tax Challenges: Pittsburgh Public Schools Contemplate Legal Action
Kurt Lieberman, Principal
215.253.6676 | kurt.lieberman@ryan.com
The Pittsburgh Public Schools district is facing a significant financial challenge as it grapples with the aftermath of the coronavirus pandemic and ongoing changes in property assessments. With downtown office buildings successfully lowering their tax assessments, the district has been compelled to return more than $10 million in real estate revenue, a figure expected to rise to $20 million soon. This situation has prompted discussions about potentially taking Allegheny County to court to enforce a countywide property reassessment.
At the heart of the issue is the use of the Common Level Ratio, a state measure that adjusts current market values with those from the last assessment. Recent adjustments have favored high-value properties, allowing them to receive artificially low assessments through legal processes. This has been particularly evident in Downtown Pittsburgh, where office buildings have seen reduced occupancy because of remote work policies during the pandemic. Major property owners have successfully appealed for lower assessments, resulting in substantial revenue losses for the district and other taxing bodies.
The proposed lawsuit would challenge the county’s assessment system on the grounds of the state constitution’s uniformity clause, which requires all local and state taxes to be applied uniformly to all taxpayers or properties. The failure to conduct regular reassessments has created a system that disproportionately burdens low-income taxpayers while benefiting higher-value property owners, particularly in downtown areas. While the district explores legal action, there’s also a call for dialogue with County Executive Sara Innamorato to consider a voluntary reassessment, a step that could potentially resolve the issue more efficiently and avoid prolonged legal battles.
The local market experts at Ryan will continue to monitor this case and the impact it could have on our clients. We encourage you to reach out with questions.