The Burrell School Board has approved a settlement agreement that will significantly reduce the property taxes for the Family Dollar store in Lower Burrell for 2025 and 2026. The agreement with the property's owner, Greensburg Road LLC, stems from an assessment appeal based on declining market rental rates.
This settlement will result in a 37% reduction in school taxes for the property this year and a 40% reduction in 2026, pending approval from the other two local taxing authorities.
Key Takeaways
- The Burrell School Board approved a tax assessment settlement for the Family Dollar property in Lower Burrell.
- School taxes for the property will decrease by $23,656 (37%) in 2025 and $25,344 (40%) in 2026.
- The property owner cited declining market rental rates as the basis for the appeal.
- The settlement was a compromise to prevent a potentially larger tax reduction.
- Westmoreland County and Lower Burrell Council must also approve the agreement for it to take full effect.
Details of the Tax Reduction Agreement
The property, located at the intersection of Greensburg and Logans Ferry roads, currently pays $63,139 annually in school taxes. Under the new settlement, this figure will see a substantial decrease over the next two years.
For the 2025 tax year, the school tax bill will be reduced by $23,656. In 2026, the reduction will increase to $25,344. Following these adjustments, the property's annual school tax obligation will stabilize at $37,483.
Property Background
The building was originally developed as a Walgreens Pharmacy before becoming a Family Dollar. Westmoreland County has assessed the property at $517,530 since 2020, which corresponds to a fair market value of approximately $3.5 million.
A Strategic Compromise by the School District
The decision to settle was a strategic move by the school district to mitigate a potentially more significant financial loss. According to Jennifer Callahan, Burrell’s business administrator, the board approved the settlement to prevent a larger reduction sought by the property owner.
Greensburg Road LLC initially filed an appeal seeking to lower the property's fair market value from its current $3.5 million to $2.5 million. Such a change would have resulted in a much steeper tax cut.
"The reduction would have been 36% worse," stated Ryan Notzen, an attorney from Andrews and Price who negotiated the settlement on behalf of the school district.
The two parties ultimately agreed on a compromise, settling on a new fair market value of $3.4 million. This agreement limits the financial impact on the school district compared to the owner's initial request.
By the Numbers: The Settlement
- Current Fair Market Value: $3.5 million
- Owner's Initial Request: $2.5 million
- Settled Fair Market Value: $3.4 million
- Current School Taxes: $63,139
- New School Taxes (after 2026): $37,483
Impact on City and County Tax Revenue
The settlement's effects will extend beyond the school district, impacting tax revenues for Lower Burrell and Westmoreland County. However, both entities must formally approve the agreement before the changes are finalized.
Lower Burrell Treasurer Frank Trozzi confirmed that the city has not yet approved the settlement but indicated that it is likely to follow the school district's lead. "We typically go along with the school district because they have the most to lose," Trozzi said.
Projected Tax Reductions
If the same percentage reductions are applied to the city and county taxes, the financial impact can be estimated:
- City of Lower Burrell: The current city tax bill is $12,809. It could be reduced by approximately $4,739 in 2025 and $5,124 in 2026, resulting in a new annual tax bill of around $7,685.
- Westmoreland County: The property currently pays $14,739 in county taxes. The projected reduction would be about $5,453 in 2025 and $5,896 in 2026.
The final approval from the Westmoreland County commissioners and Lower Burrell Council will formalize these changes, providing tax relief to the property owner while adjusting the revenue streams for all three local government bodies.
