Pittsburgh City Council Approves 20% Property Tax Increase

The Pittsburgh City Council has taken a significant step by approving a 20% property tax increase, raising the tax rate from 8.06 mills to 9.67 mills. This decision was reached during a weekend session, concluding with a 6-2 vote. For homeowners, this tax hike translates to an additional $161 annually on a property valued at $100,000. The measure is expected to generate approximately $28.3 million in revenue next year.

Pittsburgh City Council Budget Highlights

• The 2024 budget approved by the council totals $693.2 million, an increase from the $678 million budget initially proposed by Mayor Ed Gainey.
• The property tax increase will come into effect next year.
• Notably, the council’s approved increase was smaller than the originally proposed 30% hike.

Details Surrounding the Vote

During the vote, several council members expressed their concerns regarding the implications of the tax increase. Council President Daniel Lavelle acknowledged the difficult nature of the votes. His support, alongside fellow council members Bob Charland, Deb Gross, Khari Mosley, Erika Strassburger, and Barbara Warwick, helped secure the majority needed for approval.

Opposition and Support

However, dissent came from council members Theresa Kail-Smith and Bobby Wilson, who voted against the increase. Anthony Coghill, who was not present during the final vote, had also shown opposition in earlier discussions. His apprehensions were echoed by Kail-Smith, who noted that the burden of the tax hike would hit vulnerable neighborhoods hard.

Mayor’s Response

The reaction from Mayor Ed Gainey’s office was cautiously critical. Jake Pawlak, Gainey’s budget chief, expressed concerns about the changes made to the original budget. He labeled the 20% increase as “significant” but refrained from indicating whether Gainey would issue a veto. According to the city’s home rule charter, Gainey has ten days to make a decision on the measure.

Financial Implications and Future Considerations

Many councilors justified their support for the tax increase based on the unsustainable nature of the previous budget. Councilor Charland remarked that without this increase, the city could face severe financial consequences. Conversely, some council members remained skeptical about the increase’s direct benefits to residents. They argued that a more comprehensive plan was necessary to address the city’s financial needs effectively.

As discussions unfold surrounding this budget and proposed tax increase, the future fiscal landscape of Pittsburgh remains uncertain. The council continues to weigh potential impacts on city services and the long-term financial health of the community.