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Team 4: Property Tax Loophole

POSTED: 4:34 pm EST November 10, 2006
UPDATED: 6:30 pm EST November 15, 2006

The following is the Part 1 transcript of a report by Team 4 investigator Jim Parsons that first aired Nov. 10, 2006, on WTAE Channel 4 Action News at 5:30 p.m.



Click Here for Part 2 of this report.

A state law designed to stop suburban sprawl and preserve farmland is a good goal, but wait until you see who's benefiting at your expense.

A three-month Team 4 Investigation revealed that Allegheny County has been approving big property tax breaks at a record clip for country clubs, developers and some of Allegheny County's priciest properties.

Our investigation reveals that since Dan Onorato took office as chief executive three years ago, Allegheny County has approved hundreds of new applications for major assessment reductions. Among those benefiting are the owners of million dollar mansions.

Some of those property owners made a bargain to get their tax break and agreed to open their land for public use. But Team 4 wondered how open it is and put it to the test.

It's not every Allegheny County mansion where you can invite yourself over for your very own picnic right on the front lawn, but Jim Parsons, of WTAE's Team 4 Investigation team, did just that.

"Just wanted to let you know we're going to have a picnic here and hit some golf balls. Just wanted to let you know we're going to do that," Parsons told Edith

"Here?" asked Binney.

"Yeah, on the property," said Parsons.

"This has got to be some kind of joke," Binney replied.

But it's not a joke. The property tax break is a big one here. These property owners get the break in a program called Clean and Green, because they own at least 10 acres, and they agreed to allow the public to use their land. Others get the break because they claim their land is used for agriculture or is forest land.

A Team 4 analysis revealed that last year alone, Clean and Green cost Allegheny County, its school districts and municipalities more than $3.2 million in lost tax revenue, but it wasn't always so costly or popular.

"It's only recently become popular in Allegheny County, and I think only, because it can be so easily misinterpreted to grant people preferential treatment that were never intended to get preferential tax treatment," said Janet Burkardt, a school district solicitor.

The tax breaks can be substantial. For example, the land value of one Sewickley Heights mansion that is resting on 42 acres is valued at $11,000, instead of $638,000. That's because the estate of William Snyder III, according to the Clean and Green law, is supposed to be open to the public.

But, a tree on the premesis has a no trespassing sign.

The Snyder Property is surrounded by no trespassing signs and so are several other Sewickley Heights properties getting Clean and Green tax breaks, even though the law says they are to be "open to the public for outdoor recreation ... without a charge or fee, on a non discriminatory basis."

The CEO of Maxim Crane has a home on 10 acres has a house in the heights, but also has posted signs letting people know it's private property.

In fact, the house has no number, can't even be seen from Scaife Road and is on a private drive, which is off limits to the public. The only way Team 4 can show you what it looks like without trespassing is to send Sky 4 over the estate.

So, Team 4 took our findings to the county assessor.

"They're supposed to be open to the public and they're posted, no trespassing. Would you go to a property that says no trespassing, would you step on that property?" Parsons asked assessment office manager Michael Suley.

"Send me those properties," Suley said. "I'll have an assessor go look at it. If that's what you want."

The Scaife Road property belonging to Richard and Diane Brennan gets an almost $400,000 break on its assessment because of Clean and Green. We didn't see a no trespassing sign, so we drove in and set up our picnic.

Parsons planned a picnic and took along his golf clubs, in case he wanted to hit a few balls.

"Hi, are you Mrs. Brennan?" Parsons asked the woman.

"Yes," she responded.

"Hi. Jim Parsons from Channel 4. I was just going to come and knock on your door. I'm gonna have a picnic here and chip some golf balls if that's OK by you."

"Any reason why you picked our place?" asked Brennan.

"Because you're in Clean and Green," said Parsons.

Mrs. Brennan explained that she does allow neighbors to ride horses on trails across her property.

"Do you mind if people come here and use your property for other kinds of things like a picnic?" Parsons then asked her.

Brennan said she did mind and personally, she was not open to the idea.

Team 4 got the same reception at the Blackburn Road home of Edith Binney, who gets a $334,000 assessment break in Clean and Green.

"We're here as a member of the public to enjoy your property. Is that OK?" Parsons asked Binney.

"Yeah, but I don't invite people from the public to come and have a picnic here," said Binney.

When Parsons asked Suley how often assessors go out and look at the properties, Suley said he would have to get back to him with the information.

" I'd say routinely. I don't have a number," said Suley.

Parsons said Suley never got back to Team 4.

"It seems the county is becoming more and more liberal, not in a political sense, but in their granting of preferential treatment," said Janet Burkard.

The former county assessor said it's time for a thorough review of Allegheny County's administration of Clean and Green.

"Is the word out that, 'Hey, you've got 10 acres. Go down and apply for Clean and Green. You'll get a big tax break?'" asked former county assessor Dominic Gambino. "I mean, that isn't fair and wasn't the intent."

Here's something else, these properties are getting tax breaks because they're supposed to be open to the public, but you won't find them listed anywhere. Allegheny County doesn't publicize them. Suley said if you want a list of them, call his office, like Team 4 did.

In Part 2 of the segment, Team 4 will show you how Allegheny County has failed to enforce the requirements for some of the property owners who get Clean and Green tax breaks.


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