Penn Hills senior citizens to get 3% real estate tax break in 2024-25 school year, but tax hike expected then, too

Penn Hills School District officials want to give low-income senior citizens a slight break on their real estate taxes in 2024.

The board unanimously voted May 31 to approve a 3% tax rebate program effective the 2024-25 school year.

District chief financial officer John Zahorchak said 1,092 Penn Hills seniors currently qualify.

He estimated their annual tax savings at $50.

In order to qualify, the senior must have lived in Penn Hills continuously for at least the past 10 years. They must be age 60 or older. If married, either spouse must be 60. A widow or widower is eligible at age 50. Anyone who is permanently disabled qualifies at age 18.

Gross household income must be $30,000 or less.

The median assessed value of a home for those who qualify is $72,770. Estimated loss of district revenue due to the discount program is $72,000.

The program mirrors that of the Allegheny County Senior Tax Relief Program. More information can be found online through the Allegheny County Treasurer’s website, alleghenycountytreasurer.us.

Zahorchak said the discount program will not be in place this coming school year because the district did not plan for a decrease in revenue in its proposed budget.

There is no tax increase or program cuts planned in the district’s 2023-24 spending plan. Its formal adoption is planned for June 28.

The board raised taxes three straight school years including a 0.5-mill hike for the current budget. The tax rate is 30.5965 mills.

“We’ve turned around our finances and we feel this is a responsible step for our taxpayers because our finances have improved drastically over the past several years,” Zahorchak said about offering the discount program. “We also recognize that our tax rate is one of the higher tax rates in the county. This is a small step in providing some relief.”

School board president Erin Vecchio said she proposed the discount program months ago.

“We have too many seniors in Penn Hills that can’t find a way to pay their taxes and their medical bills,” she said. “Any way that we can help them, I want to help them.”

Tax hike planned for 2024-25

The discount program is not the only thing being planned for the 2024-25 school year.

Zahorchak said he plans to propose a tax increase as part of Penn Hills’ efforts to follow its financial recovery plan.

The discount program and possible tax hike are not contingent upon each other.

It’s unclear how much the tax hike may be due to various variables including the Act 1 index, a state formula that limits how much school districts can raise taxes before seeking a public referendum.