SMETHPORT — Next year some property owners with large wooded parcels in McKean County are expected to pay less in taxes, resulting in a revenue hit for school boards and municipal and county governments.
During the Tuesday meeting of the McKean County Commissioners, county chief assessor Angelia Tennies announced an assessment rate change under the state’s Clean and Green Program. The preferential tax assessment program bases property taxes on use values instead of on fair market values.
A rate change would result in tax reductions for enrolled property owners who have a forest reserve. Starting in 2016, the rate will be $224 an acre; this year’s rate is $233 an acre.
“That’s why the program was created, to give a reduction in taxes so that the large land owners, the people who had the large farms and different things, weren’t forced to subdivide land and sell their land off,” Tennies told The Era after the meeting.
But the acre reduction means the county government’s tax base is expected to shrink by $2,683,500 in assessed value, and revenue is projected to decrease by $24,822. The new rate goes into effect Jan. 1.
Countywide, the loss totals $94,291,020 in market value, thanks to the Clean and Green Program. Hardest hit areas would include the townships of Keating, Foster and Ceres.
Recently, the county assessment office mailed 3,105 notices of change of assessments for properties under the Clean and Green Program.
All told, a total of 365,473.38 acres in McKean County are enrolled in the Clean and Green Program. Properties that are part of the program must be set aside for agricultural use, like farming; agricultural reserve use, such as outdoor recreation; or forest reserve use, which includes the ability to produce timber or other wood products.
Under Clean and Green, a property owner would pay $300-something an acre, she said.
“That’s where the savings is coming. They’re (property owners) not getting hit by that base acre of $11,00-$12,000, or $8,000 depending on where the township’s located at,” Tennies said. “And then the other land, there may be a $300-$400 difference between our market value rates compared to the Clean and Green rates.”
Besides the new $224 rate for forest reserve, the rates for agricultural use and agricultural reserve use remain the same. For the agricultural use and agricultural reserve use categories, the rate would be $378 or $245, depending on the soil type, she said.
This isn’t the first time for a rate reduction. Figures have gone up and down in the past, Tennies said.
McKean County government has been part of the Clean and Green Program since the 1970s.
Also at the meeting Tuesday, the commissioners approved distributing $112,000 in liquid fuel money — the most going to Bradford and the least to Sergeant Township.
The annual allocations for the 22 municipalities are based on 50 percent of the population and miles of roads. The funds can be used for construction, reconstruction, maintenance and repair of public roads or streets.
The liquid fuel money is being distributed as: $15,226 for Bradford City: $10,103, Bradford Township; $9,992, Foster Township;$9,063, Keating Township; $8,262, Liberty Township; $6,776, Kane Borough; $6,121, Eldred Township; $5,524, Wetmore Township; $5,371, Annin Township; $5,149, Lafayette Township; $4,965, Ceres Township; $4,240, Port Allegany Borough; $3,872, Otto Township; $3,390, Smethport Borough;$2,826, Hamlin Township;$2,568, Norwich Township;$1,905, Mount Jewett Borough; $1,829, Hamilton Township;$1,490, Eldred Borough; $1,174, Corydon Township; $1,158, Lewis Run Borough; $996, Sergeant Township.
The county government receives liquid fuel money in June and December, distributed by the state government based on sales tax on gasoline, according to county chief clerk Audrey Irons. Last year’s amount for June totaled $125,000.
In other business, the commissioners approved reallocating $64,901.72 in 2012 Community Development Block Grant funds from the Foster Township South Kendall Avenue low and moderate income sewer lateral installations. Officials say that additional money was not needed for the Foster Township project.
Instead, $50,776 will be put toward Eldred Borough recreational improvements, which include a new park and playground at Ron Houben Memorial Park.
Meanwhile, $14,125.72 will be used for purchasing four sets of four-row bleachers, two of them for the Little League field and two for the Senior League field, all at the Keating Township Community Park.
Also approved at the meeting was replacing an aging postage machine. The cost is $8,877, with meter rental being $73 a month and a $104 monthly service agreement.
The commissioners also OK’d renewing a lease agreement with David J. Haight for renting office space along North Fraley Street in Kane for District Judge Dave Engman office for 2015-17. The rate is $1,120 a month, a $40 increase.
McKean County Commissioner Cliff Lane was absent from the meeting Tuesday morning.
