An increase of 0.5% to the real estate transfer tax is being proposed by the Allentown City Council. The idea is being put forth by Council members as a change to the Mayor's budget. Just to give you an idea, the typical Transfer Tax, which is also called the Home Sales Tax, is 2% in the Greater Lehigh Valley and across Pennsylvania.
In Allentown, the Greater Lehigh Valley REALTORS® launched a massive effort last year to prevent the Transfer Tax from being removed from the list of non-levyable taxes according to the City's Home Rule Charter. With a final approval vote of 54% to 46%, the modification was accepted, and Council may now consider tax increase proposals.
All of the money that comes in from the increase has to go toward housing projects in Allentown. There is a sunset clause in the law that lasts for five years. An audit of spending will be received by a subsequent Council in 2030, which will then determine whether or not to maintain the rise.
