Increased taxes are coming to citizens across the Commonwealth.
More than 5 million Pennsylvanians are expected to pay more in property taxes this year.
Four of Pennsylvania’s most populated counties are expecting increased property taxes this year. Cumberland County will see a 4% increase, while Lackawanna County will see a 33% increase.
The largest tax hike comes in Allegheny County, where the county executive pitched a 47% property tax increase. The county council negotiated it down to 36%.
Harveys Lake, a borough in Luzerne County, has not seen a property tax increase in 11 years. The original proposed tax hike for this year was 100%, but the council voted to raise property taxes by 30% instead.
The finalized tax increase for the borough will be voted on in the coming weeks.
The property tax increases across the Commonwealth signal a spending problem in Harrisburg. State lawmakers are facing a $3.6 billion budget deficit, and state spending continues to exceed revenue.
A proposed solution to this problem is the Taxpayer Protection Act, which would create an index that pegs government spending to annual population growth and inflation. For example, if Pennsylvania’s population grows by 2% and the inflation rate is 2%, state spending increases cannot exceed 4%.
The Taxpayer Protection Act would also force local governments to limit spending, which would protect taxpayers from future tax increases.
A new state budget will be negotiated by Governor Josh Shapiro and state lawmakers in Harrisburg over the next six months. The Governor is set to give his budget address in early February.
