Workers Worried About Jobs

Abraham Azain 
January 10, 1997 
Abraham J. Azain Of Lee Park Towers, Hanover Township, Died Friday At The 
Wilkes-barre General Hospital.

Sunday, January 12, 1997 &nbsp;&nbsp;&nbsp;&nbsp;Page: 4 





Where the tax rate went down and the taxes went up &nbsp;&nbsp;&nbsp; 
 Due to a loophole, Kline &nbsp;&nbsp;&nbsp; Twp. supervisors raised tax income while cutting millageOne man claims
they're taking advantage of the situation. &nbsp;&nbsp;&nbsp; 
 By MARK GUYDISH &nbsp;&nbsp;&nbsp; 
 Times Leader Staff Writer &nbsp;&nbsp;&nbsp; 
 KLINE TWP. -- In the kind of curious logic only governments can devise, a
60 percent drop in the tax rate this year resulted in more money for township
coffers. &nbsp;&nbsp;&nbsp; 
 It's logic that lifelong resident Andrew McAloose contends township
supervisors used to hide an unnecessary tax hike in the 1997 budget.
Supervisor Anthony Morelli said McAloose is misinformed. &nbsp;&nbsp;&nbsp; 
 The controversy is a relatively small consequence of the complex, roughly
$2.6 million county-wide property value reassessment completed in Schuylkill
County last year. It was the county's first reassessment in 35 years, and it
paved the way for Kline Township's first tax increase since 1987. &nbsp;&nbsp;&nbsp; 
 Luzerne County, with more than twice the population of neighboring
Schuylkill county, has not done a county-wide reassessment in 31 years. &nbsp;&nbsp;&nbsp; 
 As a result of the Schuylkill County reassessment, little Kline Township,
with a population of roughly 1,700, saw the total assessed value of property
jump from $7,983,670 to $21,486,625. &nbsp;&nbsp;&nbsp; 
 But the dramatic increase in property values does not mean a dramatic
increase in taxes for county residents. State law requires county and
municipal governments to reduce the tax rate if the reassessment results in
revenues increasing by more than 5 percent over the previous year. &nbsp;&nbsp;&nbsp; 
 It is up to individual municipalities to take advantage of the 5 percent
option. Kline township took advantage, Morelli said. &nbsp;&nbsp;&nbsp; 
 So although the tax rate dropped from 14 mills a year to 5.462 mills,
property owners, overall, will be paying more taxes. A mill is $1 tax on every
$1,000 of assessed property value. &nbsp;&nbsp;&nbsp; 
 Morelli said the township's maximum property tax revenues last year would
have been $111,771. The township always falls a little short of the maximum
because of tax rebates, uncollected taxes or tax disputes. &nbsp;&nbsp;&nbsp; 
 Under the new tax structure Morelli said the township should collect an
additional $5,588 in 1997, 5 percent more than last year's maximum. Morelli
said it's the first tax increase in 10 years. &nbsp;&nbsp;&nbsp; 
 McAloose contends Morelli initially did not tell the public the lower
millage actually represented an increase. Morelli said the increase was
clearly marked in the budget for all to see. &nbsp;&nbsp;&nbsp; 
 McAloose also claims the tax increase is unnecessary because the township
will have a projected surplus in 1997 of $89,052 from a total anticipated
income of $462,796. &nbsp;&nbsp;&nbsp; 
 Morelli said the surplus is no secret and is needed at the start of each
year to cover township expenses for the first several months, until tax
revenues start coming to the township in March and April. &nbsp;&nbsp;&nbsp; 
 Morelli also said Schuylkill County usually gives the township $3,500 a
year toward road maintenance, but is cutting that amount in half this year. &nbsp;&nbsp;&nbsp;

Where The Tax Rate Went Down And The Taxes Went Up Due To A Loophole, Kline Twp. Supervisors Raised Tax Income While Cutting Millage.