Allegheny County property taxes could be going up. Here's how much more you could soon be paying.
PITTSBURGH (KDKA) -- Allegheny County property taxes could be going up and homeowners could face the largest property tax increase in memory under the proposed budget from Allegheny County Executive Sara Innamorato.
Innamorato unveiled the proposed 2025 budget in front of Allegheny County Council on Tuesday. The budget includes a property tax increase of more than 45 percent. It would be the county's first property tax increase in 12 years.
"It's a 3 percent increase in spending, which is in line with inflation," Innamorato said on Tuesday.
Faced with dropping commercial real estate revenues and an end to federal COVID-19 relief funds, Innamorato asked Allegheny County Council to increase county property taxes by nearly half to shore up an $80 million budget shortfall.
Democratic Allegheny County Councilwoman Bethany Hallam has already pledged her support for the tax increase.
"This is something we have to do," Hallam said. "Of course, it's not something we want to do, but it needs to happen. We are facing an $80 million deficit just this year alone. And with no tax increase, that number next year will be $166 million. We have to get it from somewhere. All other avenues have been exhausted, so the millage rate increase is something that has to happen."
Proposed millage increase in Allegheny County
But the drastic increase is bound to be wildly unpopular. According to the county, the proposal will increase the county's millage from 4.73 to 6.93 — an increase of 46 percent. In and of itself, that would add about $200 in property taxes to a house valued at $110,000.
However, Innamorato proposed an increase to the Homestead Exemption. In a news release on Tuesday, the county said it will "lessen the impact of a millage increase - especially for households assessed below the median home price."
During her budget address to Allegheny County Council after being elected, Innamorato said she inherited a crisis of dropping commercial real estate values and an end to federal COVID-19 funding, coupled with rising health care costs at the Allegheny County Jail and Kane hospitals.
All this, she says, makes it necessary to levy the largest property tax increase in county history.
"We are facing some challenging headwinds," she said on Tuesday. "I have been open and honest about that."
The $1.2 billion operating budget represents a 3 percent increase over last year. But Innamorato is asking taxpayers to come up with an extra $166 million to shore up an $80 million deficit. She calls it regrettable but necessary.
"The previous administration neglected their duties to reassess property values, to raise taxes to fill budget shortfalls, and that's where we are today," Hallam said. "The current county executive inherited a mess. And it is our responsibility as legislators to help her fix it."
Republican Allegheny County Councilman Sam DeMarco is against any tax increase.
"I feel this is a terrible time to try to hammer the taxpayers of Allegheny County with a 46.5 half percent tax increase," he said. "I think that is outrageous. These people are already being hammered with inflation, higher grocery prices, higher gas prices."
Council to debate proposed budget
But this is a proposal and other council members have yet to weigh in. Over the next weeks, it will be subject to budget hearings. While Innamorato says she will not make what she calls draconian cuts to personnel or services, Allegheny County Council may demand some.
Ten of the 15 council members need to vote "yes" to pass the property tax increase. Council has to vote on the budget no later than 25 days before the end of the year.
