Opposition to the Proposed Tax Increases in Allentown

During the recent elections held in Allentown, Pennsylvania, the administration decided to include in the ballot a proposal to authorize an increase in the taxes applied to property deeds when buying and selling properties within the city.

For some years now, Allentown has had a set property transfer tax in its regulations. However, a proposal has recently been circulating among city residents seeking votes against this increase in taxes.

The law issued in 1996 establishes limits on the government when setting tax rates on property deeds. Due to this law, the administration has been unable to raise these rates for years.

According to the law, all people involved in the purchase and sale of any type of real estate (buildings, lots, houses, etc.) must pay a 2% deed transfer tax, where 1% will be allocated to the state, and the remaining amount will be divided between the city of Allentown and the school district.

Although the proposal has not yet been endorsed by residents or real estate agents, increasing this type of tax would make homebuyers pay more in deed transfer taxes for a property but could also generate millions more in annual funds for the city.

According to opponents of the proposal presented by the mayor’s office, in addition to increasing the cost of every property sold or bought, the question posed on the ballot is unclear and leaves many doubts for both consumers and market experts. They believe the administration should be more precise and transparent with citizens about the consequences this proposal would bring to the city and voters if it were approved.

Market experts in Allentown clarify the proposal’s intentions. According to the wording, a voter could understand the question to mean that the deed transfer tax would be eliminated rather than the legal limit being removed. Therefore, if the citizen accepts the proposal, the administration could eliminate the limit and potentially increase the deed transfer tax. On the other hand, if the public opposes it, officials will have to keep the rate imposed by law from years ago.

They also argue that what the population needs is clarity about the proposal and the implications it would have on the market if approved. They claim that if officials clearly explained their tax increase measure, the proposal would undoubtedly be rejected by all.

Nevertheless, if the administration’s proposal were approved, it would not automatically trigger a tax increase on transfers; the council would still need to enact legislation to raise the rate.

Available Foreclosures:

Allentown: 15 homes available.

By Elias DaSilva | October 11, 2024.