For years, property owners in Warren County have paid one tax bill for their municipal, county and school taxes.

That will change this year.

Instead of one combined bill, the bills for municipal and county taxes will now be split from the school district portion of the bill. That means property owners will have to pay three property tax bills instead of one. County and local tax bills will be sent in March, according to a recent FAQ sent by Warren County officials, with school tax bills to be sent in August.

“Conversations are ongoing to establish additional office hours with each municipality’s tax collector,” the FAQ said.

Warren County was the last county in Pennsylvania to send out a combined tax bill each year. County officials are making the change to help alleviate a cash crunch created, in part, because local governments and the Warren County School District operate on different fiscal years. The county operates on a January through December fiscal year while the school district’s fiscal year runs from July through June. The county’s 2024 property tax revenue did not start coming in until September, nine months into the fiscal year. That presents budgeting and cash flow challenges until it’s known, not until October or November, with just a month or two remaining in the fiscal year, whether the revenue for the year will match what was projected before the year started. Under the new model, revenue will come in much earlier in the year, allowing for more accurate financial planning.

In the past the county has taken out tax anticipation notes, basically a temporary loan from a lender that provides the county access to money it is expected to receive once tax revenue starts coming in. The problem for the county is that tax anticipation notes create an interest expense that has increased for the county over the past few years as interest rates have increased. It’s unclear if the county will need a tax anticipation note in the future, but county officials expect the costs to decrease if they need it in the future.

“That won’t be clear until at least 2026 as we gain an understanding regarding how this change will impact the county’s financial planning,” county officials said. “If a TAN is needed in future years, we believe this tax billing change will allow for a reduction in the amount needed to borrow. With a complete picture of fiscal year revenues by June rather than October, we’re confident we can more effectively contain expenses in the latter part of the year and potentially reduce the level of borrowing.”

The dates to pay property taxes are as follows: the discount window will run from March 1 through April 30 to be followed by “par” from May 1 through June 30 and then “penalty” from July 1 through Dec. 31. Dates for school taxes will change, with the discount period to be August and September. Taxes paid during October and November will be at par while the penalty phase will run from Nov. 1 through Dec. 31.

One thing property owners need to be aware of is how mortgage companies will pay taxes. County officials said tax collection officials have been in contact with mortgage companies to notify them of the change, but property owners should take action as well.

“Tax collection officials have been in contact with mortgage companies to notify them of the change but there are many smaller mortgage companies that might remain unaware. We recommend the taxpayer reach out to their mortgage holder and have that discussion,” county officials said.