ALLENTOWN, Pa. – Lehigh County Executive Josh Siegel is proposing a 17% increase in county property taxes as part of his administration’s proposed 2027 county budget. 

During a budget presentation Monday, he said the budget would raise the millage rate from 3.78 to 4.45. That’s a 17.72% increase.

4.45 would equal $445 of property tax per $100,000 of assessed value, or $4.45 in property tax for every $1,000 of a property’s assessed value.

He said the new millage rate would represent a $113 increase in property tax payments a year for the average homeowner.

He says it would provide county residents with necessary resources and would help restore the fund balance.

He says the county is seeing an increasing demand for its services as the area rapidly grows.

Siegel says Lehigh County has to build a budget that is reflective of the fact this area is not shrinking.

He tells us the area is on track to add another 100,000 residents by 2050, a majority of which will be in Lehigh County.

Siegel says this is the final year of American Rescue Plan funding, and that COVID was not the appropriate time to raise taxes.

He’s proposing a majority of the money be spent on law and order.

Also in this budget, Siegel is proposing the county invest $1.7 million on farmland preservation.

We spoke with the county executive afterwards about his proposal for households to pay around $113 more.

“I think the important thing to remember is that these were decisions that were based on deferred decisions before I got here.  This was a number that was entirely dictated and determined by the reality of the can that was kicked down the road and this administration inherited and it’s our responsibility to resolve it and fix it and put the county on a firm financial footing for the future,” Siegel said.

During his presentation Monday, Siegel said the budget has seen structural deficits multiple times over the last few years.

He noted property taxes represent the vast majority of county revenue. He said property taxes have been growing at a slow rate and the county has been tapping into its stabilization fund.

He said the budget does not include a county-level wealth tax, and that his administration would not push for one through legislation or any other means.

“The discussion is dead,” he said.

The Lehigh County Board of Commissioners finance committee recently held a hearing on the proposed tax at the Historic Lehigh County Courthouse.

‘Wealth tax’ divide: Lehigh County hearing on proposed tax draws range of reactions

The “Intangible Personal Property Tax,” also commonly known as the “wealth tax,” would allow the county to acquire an additional $25.5 million each year in revenue by taxing Lehigh County residents on their various assets.

Controller Mark Pinsley said the county’s revenues have been unable to meet its spending habits for a sustained time period.

To solve the deficit, Pinsley issued a report examining an “alternative path… to study the idea of having something other than a property tax” to provide Lehigh County with new, consistent and additional funding. Without a new tax, Pinsley said, the county would have to raise property taxes or reduce spending.

The finance committee had not rendered a vote on the wealth tax proposal at that meeting.

The budget now goes to the board of commissioners. The deadline to pass it is Oct. 31.