State College

Live in State College? Here’s how much your real estate taxes might go up in 2019

A view of the Penn State campus and downtown State College from the roof of the Fraser Centre on Thursday, Oct. 11, 2018.
A view of the Penn State campus and downtown State College from the roof of the Fraser Centre on Thursday, Oct. 11, 2018. Centre Daily Times, file

State College borough’s proposed 2019 budget calls for a 2.19 percent, or .36 mill, real estate tax increase.

According to budget documents, the additional tax revenue will fund increased contracted tree pruning, operating expenses associated with the Historic Architectural Review Board and regional programs. The tax increase will provide $174,469 of recurring real estate tax revenue.

It would bring the municipality’s millage rate to 16.76.

If your home has an assessed value of $300,000, with no homestead exclusion, your real estate taxes would go up by $108 next year. To calculate what your new real estate tax might be, multiply the assessed value of your home (minus any homestead exclusion) by .01676.

If the proposed tax increase is approved, it will be the first time the borough has raised real estate taxes since 2016. The budget that year included a 2 mill increase.

In the proposed 2019 budget, the total revenue and use of fund balance, after adjusting for interfund transfers, is about $49.7 million, with total expenditures of about $49.7 million.

According to budget documents, the borough’s largest expenditure — in the general fund — is police, at 38.3 percent, followed by public works at 22.5 percent, administration, 14.8 percent; debt/other, 10.7 percent; regional programs, 6.5 percent; planning and neighborhood services, 6 percent; and parking enforcement, 1.4 percent.

The real estate tax is the biggest driver of revenue in the general fund, bringing in 28.8 percent. Contracted services account for 27.3 percent of the general fund’s revenue, while earned income tax brings in 18.4 percent; shared revenue/ in lieu, 6.1 percent; realty transfer tax, 4.3 percent; local services tax, 4.2 percent; fines and violations, 3.9 percent; user fees, 3 percent; licenses and permits, 2.7 percent; grants, 1 percent; and interest and rents, .4 percent, according to budget documents.

The proposed 2019 budget can be found in full online.

A public hearing on the proposed 2019 budget is scheduled for Dec. 3, with adoption slated for Dec. 17.