PITTSBURGH — Pittsburgh City Councilmember Barb Warwick announced plans to introduce legislation this week that would raise the city’s real estate tax by 30 percent in 2026. It comes as the city faces a $20 million budget deficit.
“It hurts, and it’s a lot all at once,” Warwick said. “I think the big thing, of course, is the dropping real estate tax values in downtown, and also the drying up of the American Rescue Plan dollars. So we do not have that cushion that we had in the past.”
Warwick’s proposal includes increasing the millage rate from 8.06 mills to 10.48 mills, which she said would generate more than $41 million in additional revenue for the city.
A Pittsburgher whose home is valued at $100,000 would pay an additional $20.17 per month on top of their current annual real estate tax of $806 per year, said Warwick.
“The reality is - you put it off for too many years, we saw that happen with the county, we are seeing it now at the city. Responsible elected officials realize they have to do the hard thing,” Warwick said.
Councilman Bobby Wilson told Channel 11 there is a need to figure out different streams of revenue. He said the council should start by checking in with city departments and programs to see if certain costs are still justified.
“It’s really got to be a comprehensive way to where we’re meeting the public halfway, at least, on what that increase would look like – if an increase at all – we should show the public how much we’re working to fix our own home before we put it on their home,” Wilson said. “It’s just not going to fly.”
This comes at the same time Pittsburgh Public Schools is also dealing with a budget shortfall after the Board of Directors voted against a plan to close or consolidate a dozen schools. It’s a potential one-two punch for Pittsburgh property owners, who could see an increase in school taxes as well.
“You’re seeing an increase in grocery bills, increases in your rent, I mean, it really is across the board - but I know that my job at the city of Pittsburgh is to make sure that the city of Pittsburgh can write efficiently and effectively and that we are able to keep our people safe,” Warwick said.
It’s the first tax hike in 11 years for homeowners like Artie Solomon of Squirrel Hill.
“I’ve had my house for over 30 years, and now I’m retired, so it’s hard for me to keep paying more and more money,” Solomon said.
The proposed tax increase would also cover the cost of repairs to Pittsburgh’s aging vehicle fleet. Warwick said the vehicles need another $10 million a year, but Solomon and other taxpayers said they believe that should have been taken care of gradually.
“They let that go way too long, and it would have been cheaper to do it as the problem arose,” Solomon said.
Others we spoke with fear it could impact the local economy.
“Whenever you’re paying more for things, it affects how much money you’re able to spend in the community,” said Mishal Peterangelo, who lives in Regent Square.
Warwick will present the plan at Tuesday’s city council meeting. She said the city will also hold public hearings before the council votes on the proposal.
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