This is the second article in our "Understanding the Burrell School District Budget: What Every Taxpayer Should Know" series. Each post unpacks a different piece of the school budgeting process—from how it's built to where your tax dollars go. In this article, we’re focusing on how your school tax bill is calculated and why millage rates can be misleading without understanding the full picture.
What Is a Mill?
In Pennsylvania, school districts use a millage rate to determine the amount of real estate taxes property owners pay. A mill is equal to $1 in tax for every $1,000 of assessed property value. So, if a property is assessed at $100,000 and the tax rate is 10 mills, the owner would pay $1,000 in taxes.
In Burrell, the current millage rate is 117.5, and under the proposed 2025–26 budget, that would increase to 122 mills — a 4.5 mill increase. For the average homestead, which has an assessed value of approximately $23,000, this would typically result in about $104 more per year. However, most owner-occupied residences qualify for a homestead/farmstead exclusion, which reduces the tax burden. Last year, that reduction was about $258, and for 2025–26, it is expected to increase to $298. As a result, the net impact of the proposed tax increase for the average approved homeowner would be closer to $63 more per year, or about $5.25 per month.
How Is Assessed Value Determined?
The assessed value of a property is set by the county—not the school district—and represents a taxable portion of a property’s market value. It’s important to note that assessed values in Westmoreland County have not been reassessed in years, which means they are generally much lower than true market values.
Jennifer Callahan, Burrell’s Business Administrator, explained how this plays a critical role in local tax calculations. “Every property—whether it’s a home, a business, or a shopping center—has an assessed value. Multiply that by the millage rate, and that’s your tax bill.”
The Value of a Mill: Why It Varies by District
It’s easy to look at a district’s millage rate and assume a higher number means residents are paying more in taxes. But the truth is more complicated. The value of a single mill—how much revenue it generates—depends entirely on the total assessed property value within the district.
In Burrell, one mill generates approximately $150,000 in revenue. But in nearby districts with more commercial growth and higher assessed property values, that number is much higher:
- Franklin Regional: ~$355,000 per mill
- Greater Latrobe: ~$329,000 per mill
- Norwin: ~$417,000 per mill
- Hempfield: ~$543,000 per mill
Because of this, districts like Burrell need more mills to raise the same amount of money. “Yes, our millage rate is the highest in the county,” said Callahan, “but a single mill brings in significantly less revenue here than it does just a few miles away.”
Why Are Burrell’s Property Values Lower?
Over the last several years, Burrell has faced a consistent decline in total assessed value, driven largely by successful tax appeals from large commercial properties. Since 2023 alone, appeals from businesses like Arconic, Hillcrest Shopping Center, Siemens, and Elias Plastics have reduced the district’s total assessed value by millions of dollars, costing Burrell School District over $700,000 in annual revenue.
In contrast, nearby districts have seen growth through new housing developments and commercial projects. More properties mean higher total assessed value, which translates to more revenue without raising taxes. Unfortunately, Burrell’s lack of new development means that even to maintain current service levels, a tax increase may be necessary to offset losses.
Conclusion: It’s Not Just the Rate — It’s the Math
The relationship between millage rates, assessed values, and tax revenue is complex. A higher tax rate doesn’t necessarily mean higher tax bills when property values are lower. But for Burrell, it also means that the burden of funding education falls more heavily on fewer properties—especially when commercial tax appeals shrink the base.
Understanding how these pieces fit together helps explain why tax increases are sometimes necessary—not to expand spending, but simply to keep pace with costs and maintain the services that support our students.
👉 To stay informed and involved, attend our upcoming public budget meetings, ask questions, and explore the resources shared online. Your engagement helps ensure Burrell remains a strong, responsive, and community-driven district.