Elk County is initiating an assessment ratio change to take effect in the year 2006.  This means your property will be assessed at 50% of the 1984 market value rather than the 20% you are now being assessed at.  Basically, your 1984 market value remains the same and the predetermined ratio increases from 20% to 50%.  All taxing districts and authorities will be required to reduce their tax (millage) rates accordingly.  The tax is the millage rate at which you are taxed. 

Pennsylvania law requires that in the year a ratio change becomes effective, County and Municipal tax (millage) rates may only increase up to 5%, School district millage rates may only increase up to 10%.  Any taxing district exceeding those limits may do so only by court order.

A change in the predetermined assessment ratio does not cause a tax increase.  Only the taxing authorities can increase your taxes by raising your millage rates. 

The Elk County Commissioners will decrease the County’s millage to 11.97 mills to reflect the maximum increase of 5% allowed by law.

A ratio change is taking your assessment value from your tax bill of this year and multiplying it by 2.5.  Take the millage rate for all taxing bodies (County and Municipal) and divide those by 2.5.  Take the new assessed value times the new millage rate and the taxes should equal each other.

Predetermined Ratio for 2005 equals 20% or 1/5 of the market value of 1984.

Predetermined Ratio for 2006 equals 50% or ½ of the market value of 1984.

Tax Year 2005

Market Value (1984)    50,000

Ratio                              .20

Equals                       10,000

Times millage                .025

Equals                       250.00

Tax Year 2006

Market Value (1984)     50,000

Ratio                              .50

Equals                        25,000

Times millage                 .010

Equals                        250.00