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Property Tax May Rise 83 Percent in Upper Nazareth Township

Homes assessed at $50,000 would pay $135 more per year if Upper Nazareth Township's proposed budget is approved.

 

Upper Nazareth Township residents face an 83-percent increase in their property taxes next year if the township's proposed 2012 budget is approved.

Property tax will rise by 2.7 mills -- from 3.25 mills to 5.95 mills -- under the proposed budget, which will be available for public inspection starting Friday, Nov. 18 at the Upper Nazareth Municipal Building.

That means a tax increase of $135 a year for the owner of a property assessed at $50,000, which normally means the house is worth about $200,000 on the market.

Upper Nazareth supervisors on Wednesday said the bleak economy, lack of a commercial tax base in the township and rapid residential growth -- followed by the bursting of the housing bubble -- forced them to raise taxes for the first time in several years.

Supervisors will vote next month whether to give final approval to the proposed $2.4 million budget, which resulted from numerous public workshops over the past two months.

A long written statement was issued by the supervisors, and details the reasons for the unavoidable tax hike. Township Secretary Jeri Kronstadt read the statement aloud at Wednesday's supervisors meeting. It will be posted to Nazareth Patch later this week.

“The Upper Nazareth Township Board of Supervisors feel our residents deserve to know and understand how and why this board has found it necessary to increase the 2012 real estate tax millage rate,” the statement begins.

The statement notes that supervisors realized early this year that township finances were badly strained, then asked the head of each township department to cut at least 10 percent from budgeted expenses for the year.

That saved about $200,000, supervisors say. Other savings came from decreased electricity costs and insurance costs, after switching providers and changing coverage options, Supervisor Scott Sylvainus said.

Supervisors, in their statement, also note that more than $100,000 was trimmed from the original 2012 budget proposal during the budget review process.

The Public Works Department budget was cut by 17 percent and the township police budget by 7 percent, while contributions to the township fire department and The Memorial Library of Nazareth and Vicinity were reduced by about 12 percent, according to the statement.

That still left a gap between anticipated revenue and expenses -- with little left in the till to make up the difference, as Upper Nazareth used more than $1 million in savings to balance budgets over the past four years, supervisors say.

One possible bright spot for cash-strapped property owners in Upper Nazareth was discussed Wednesday.

Supervisors proposed a tax rebate program for seniors on fixed or limited incomes. A similar program is available for seniors who struggle to pay public school property taxes.

Township Solicitor Gary Asteak said he would research whether a rebate program at the municipal level is permitted by state law.

The Upper Nazareth Supervisors will meet next at 7 p.m. on Wednesday, Dec. 7 at the township municipal building.

Related Topics: Board of Supervisors, Property Tax Increase, Proposed Budget, and Upper Nazareth Township

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