ALLENTOWN – Residential and commercial property owners in Allentown can expect to pay more in municipal taxes in 2020, according to the borough’s chief financial officer.
During a budget workshop she presented to Borough Council members on Feb. 25, CFO June Madden said Allentown’s municipal tax rate is projected to increase from about 82 cents to about 85 cents per $100 of assessed valuation this year.
Madden said when the 2020 municipal budget was in the early stages of being developed, indications were that property owners would see a 7-cent increase in the municipal tax rate. She reported that $78,000 was trimmed from the initial budget and the result is the projected 3-cent increase in the municipal tax rate.
Allentown’s 2020 municipal budget is expected to be introduced by the council on March 24. The budget will detail the revenues borough officials expect to receive and appropriations for municipal operations.
Madden told council members and members of the public that in 2019, the average home in Allentown was assessed at $290,842. With a tax rate of 82 cents in place, the owner of that home paid about $2,384 in municipal taxes.
In 2020, the average home in Allentown is assessed at $291,600, according to Madden. With a tax rate of 85 cents in place, the owner of that home will pay about $2,478 in municipal taxes, an increase of $94.
If the budget as initially proposed had not been reduced by $78,000 and the municipal tax rate increased from 82 cents to 89 cents per $100 of assessed valuation, the increase in municipal taxes for the owner of a home assessed at the borough average from 2019 to 2020 would have been about $211.
Municipal taxes are one item on a property owner’s total tax bill. Allentown property owners also pay Upper Freehold Regional School District taxes and Monmouth County taxes.
The budgets from the regional school district and the county are expected to be introduced during the next few weeks and the tax impact of each budget will be reported.
The amount an individual pays in property taxes is determined by the assessed value of his home and/or property and the tax rate that is set by each taxing entity.
Allentown’s municipal budget for 2019 totaled $2.48 million and was supported through the collection of $1.58 million in taxes from Allentown’s residential and commercial property owners. Other revenue in the budget included $375,000 from surplus funds and the receipt of $131,595 in state aid.
Madden said officials anticipate using $500,000 from surplus funds in the 2020 budget. She said state aid will remain flat. The borough’s property owners as a whole will pay a higher tax levy. The CFO also said a water rate increase is anticipated this year.
Allentown officials have previously said school taxes account for 62% of every $1 a property owner pays in taxes. Municipal taxes account for 26%, county taxes account for 11% and open space taxes account for 1%.