2020 Real Estate Tax Estimates -- Here's How Much You'll Pay
We estimate that the average Mount Pocono homeowner will pay approximately $4,071 in real estate taxes in 2020. We'll get to how we determine that below, but first some background. As you know, in 2019 Monroe County embarked on a county-wide reassessment of real estate values. This was the first reassessment in over a generation. When the county last reassessed, in 1989, properties were assessed for real estate tax purposes at 25% of their actual values. For the 2019 reassessment, the assessed values represent 100% of the county assessed value. This resulted in some sticker shock as the assessment numbers came in. Homeowners saw their assessment increase by a multiple of 3, 4, or even 5 times the 1989 assessment. Confusion over the different assessment standards led to fears that homeowner taxes would also increase by the same multiple. They will not.
Under state law, taxing authorities are required to change their new millage rates to a number that will result in the the same amount of estimated tax receipts as the year before assessment.
They are also permitted to raise taxes, but by no more than ten percent. Mount Pocono resident real estate taxes are imposed by three taxing authorities -- the county, the Borough of Mount Pocono, and the Pocono Mountain School District. The school district new millage rate goes into effect July 1 2020, the county and Borough rates start January 1.
The county's proposed budget sets their 2020 millage rate at 3.2273 mills. Neither the school district nor the Borough have disclosed what millage they are setting in 2020. We have taken a look at the assessment figures for the municipalities comprising the school district. Based on the new real estate tax assessment values for those communities, we are estimating that the new Pocono Mountain School District 2020-21 mill rate should be about 19.2 mills. Keep in mind that this is a rough estimate, but we think it is close enough to work with. In Mount Pocono, the total assessed value of all taxable real estate in the Borough is $278,481,020.00. In 2019, the Borough was entitled to collect $1,065,204 in real estate taxes. To determine what the equivalent millage rate should be under the new assessment values is an easy calculation - divide last year's expected receipts ($1,065,204) by the total assessed values ($278,481,020).
That gives us an expected Borough millage rate of 3.8250. Based on that figure, the total millage for Mount Pocono homeowners should be 26.2623: PMSD 19.2000 County 3.2273 Borough 3.8250 TOTAL 26.2623 The average home in Mount Pocono is worth approximately $155,000. To figure out the total 2020 real estate taxes on a home, multiply the millage by the assessed value. One mill is one dollar per $1,000 dollars of assessed value. So the total millage is 0.0262623. Multiplying the average home value of $155,000 by 0.0262623 results in an estimated real estate tax of $4,070.66.
To estimate what YOU will be paying in real estate taxes, multiply the value of your home by 0.0262623. BUT (there;s always a "but", right?). It looks like you'll be paying more because Mount Pocono's draft budget proposes a real estate tax increase for the Borough. The draft Borough budget seeks real estate tax revenues of $1,158,411 -- an increase of $93,207 over last year -- an $8.75% tax increase. This translates into a Borough 2020 millage of 4.1597 ($1,158,411 divided by $278,481,020), instead of 3.8250. The majority of council have proposed reducing employee benefits in 2020, denying employee raises for the third year in a row, and more than doubling the pay for council members. Some are also proposing to grant council members free health insurance. The Borough budget committee is interim mayor Michael Penn, council president Claudette Williams, and council members Aida Montanez and Fran O'Boyle. There is a council work session at 7 pm Monday, December 16. The public is invited to attend.