Central York board previews settlements in tax-assessment appeals, warns $380,000 hit to 2025–26 revenue

The Central York School District Board of Directors heard detailed updates on two commercial tax-assessment appeals March 24 that will reduce projected real-estate tax revenue for 2025–26 by about $380,000, district staff said.

Miss Martin, a district staff member presenting the item, told the board the district reached a settlement with the owner of a commercial office building identified as Kinsley Equities. The property’s agreed market value was set at $5,100,000, producing an assessed value the parties set at $2,750,000 effective Jan. 1, 2025; that change will reduce 2025–26 real-estate tax revenue by about $26,000, Miss Martin said. The board will be asked to approve that settlement at its April 7 meeting.

Miss Martin also reviewed two parcels tied to the York Gallery and Mall. She said one parcel (the Red Robin site) would see an assessment increase that yields about $16,000 in additional revenue. The larger mall parcel, however, has been the subject of an appeal dating to 2021. After the parties and the district’s solicitors reviewed a November 2023 appraisal and agreed to a lower capitalization rate than the taxpayer initially used, the mall’s agreed assessed value was set at $15,000,000 effective Jan. 1, 2024. Miss Martin said that change triggers a refund the district will owe the taxpayer for 2024 taxes of about $191,400 and will reduce revenue in 2025–26 as well.

Taken together with other assessment changes the district has approved, Miss Martin said she expected the net effect to be a reduction to the 2025–26 real-estate tax revenue forecast of approximately $380,000. “Taking all the assessments that you had already approved and the ones I have presented here tonight, I will need to reduce the 2025–26 budget by around $380,000 in real estate tax revenue,” she said.

Directors pressed staff for options to reduce the near-term hit. Director McMillan noted the district currently has surplus cash and asked whether the district could repay the taxpayer for the 2024 amount this year to blunt the 2025–26 budget impact; Miss Martin said she would explore the option. A board member suggested asking the taxpayer for a discount in exchange for immediate payment; Miss Martin said she would raise that with solicitors and report back.

Miss Martin said the board would be asked to approve the settlements at its April 7 meeting and that the numbers would be included in the budget presentation to the business operations committee the following Monday.

Why it matters: The settlements change the district’s near-term revenue forecast and could affect the 2025–26 budget and any decisions about millage or program spending. Because the outcomes reflect negotiated appraisals and capitalization rates, they reduce tax receipts the district had expected from those properties.

Details extracted from the board discussion: - Kinsley Equities (Concord Road office): agreed assessed value $2,750,000 effective 01/01/2025; estimated 2025–26 revenue reduction ≈ $26,000. - York Gallery — Red Robin parcel: new assessment yields ≈ $16,000 additional revenue (2024 common-level adjustment). - York Gallery mall parcel: agreed assessed value $15,000,000 effective 01/01/2024; district refund owed for 2024 ≈ $191,400; combined effect with other settlements reduces projected 2025–26 real-estate revenue by ≈ $380,000.

Next step: Board consideration and formal votes on the settlements are scheduled for the April 7 board meeting; staff will return with follow-up on whether the district can pay refunds this fiscal year and whether a discount for early payment is negotiable.