Allentown committee discusses possible half-point deed transfer tax increase as budget option

Members of the Allentown City Budget and Finance Committee discussed the possibility of increasing the deed transfer tax by 0.5 percentage point as an option for the 2026 budget, but did not take a formal vote.

Committee member Ms. Gerlock raised the topic during the meeting. Finance staff member Patel said the city's deed transfer tax rate is 2% on property transfers and that, according to staff's summary, one percentage point of the 2% goes to the state. Patel said the city receives a half percentage point from the 2% total; the remaining half percentage point was described in discussion as being distributed but was not specified in the meeting record.

Patel provided revenue history: the 10-year average deed transfer-tax receipts are approximately $2,200,000; 2024 and 2022 were higher-receipt years of about $3,200,000. Staff said county transaction data show an average of roughly 175 property transfers per month between 2021 and 2024. Patel said the administration had been informed and that city staff would bring the matter back at budget time or introduce an amendment during the budget process if the mayor and administration decide to proceed.

Committee members scheduled a follow-up meeting with the mayor and with the city's community-development director, Vicki Kistler, and noted that staff had already shared the base transfer-tax estimates with City Clerk Mike Hamlin. No ordinance or formal amendment was introduced during the meeting, and the committee gave no formal direction to adopt a rate change at this session.

Next steps: staff will continue discussions with the mayor's office and the community-development director; any proposal to change the deed transfer tax would be introduced or considered during the city's 2026 budget process if pursued by the administration.