Two bills that school officials say would have meant tax increases and millions in lost revenue in their districts were vetoed yesterday by Gov. Rendell.

Rendell said in his veto message that he wanted to see a major change in state law that would force counties to reassess real estate more frequently.

Under current law, counties have to assess all real estate parcels at the same time, and are forbidden from raising values on individual properties except in the cases of new homes or significant renovations.

However, a little-known provision gives school districts – the beneficiaries of most of the property-tax money – and towns the option of appealing individual assessments that they view as too low. The House and Senate bills that Rendell vetoed would have ended that practice.

Some tax experts argue that the practice is unconstitutional because it essentially allows schools and towns the right to engage in selective “spot assessments.”

School officials counter that when property owners are underassessed – especially owners of pricey commercial real estate – homeowners end up subsidizing them. Since counties can go decades without reassessments, the inequities persist for decades as well.
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