Property owners in State College will have to pay more in taxes next year, although the increase won’t be as high as what council members previously proposed.
Monday night, council members approved a 2 millage increase, or 8.7% Originally, council members were considering an 8 mill increase, which is about 35%.
The new budget and tax rate come after public outcry and the borough receiving an unexpected $2.8 million in Real Estate Transfer Tax revenue, but council members say they can’t keep relying on unexpected, one-time cash infusions.
Council member Matt Herndon said the council needs to quickly pass the zoning reforms they’ve been working on to expand the borough’s tax base. Currently, almost half of the property in State College is tax-exempt.
“I can support this budget tonight, but there is a looming tax increase next year that we all need to be aware of," Herndon said. "And we absolutely need to get our zoning done as soon as possible to reduce it as much as possible.”
Nalini Krishnankutty, another council member, said even if they pass a new zoning ordinance, the borough won’t see more money coming in for a while.
“I think we need to get creative," Krishnankutty said. "We need to look at other solutions. That includes maybe judicious cuts in services.”
Borough Council members will continue to review the new draft zoning ordinance at their January 15 meeting.
