Pittsburgh’s City Council has officially approved a significant 20% increase in property taxes to address funding shortfalls in the proposed 2026 budget. This decision, passed with a 6-2 vote, comes in response to a budget gap estimated between $20 million and $30 million. The property tax hike raises the city’s millage rate from 8.06 to 9.67, adding $1.61 in tax for every $1,000 of assessed property value.
Pittsburgh Council Votes on Property Tax Increase
The tax hike was approved on a Sunday morning, with council President R. Daniel Lavelle and five others supporting it. Those who voted against the measure included councilor Bobby Wilson and Theresa Kail-Smith. Notably, councilor Anthony Coghill, absent during the final vote, had previously opposed the tax increase.
Budget Background
Mayor Ed Gainey’s proposed budget for 2026, totaling approximately $680 million, did not initially include a tax increase. However, council members and City Controller Rachael Heisler voiced concerns about unrealistic budget projections, particularly in areas like public safety overtime and utility expenses.
The council aims to address deficiencies in funding for essential services, including fire, EMS, and public works vehicles. A proposal for a 30% tax increase from councilor Barb Warwick was ultimately reduced to the currently approved 20% increase.
Public Response and Concerns
- Many residents expressed opposition during public hearings, advocating for increased contributions from large nonprofits.
- Community members voiced concerns about the impact on local renters due to rising property taxes.
- Councilor Kail-Smith criticized the tax increase as burdensome, particularly for low-income residents.
Impact on City Finances
The increase is projected to generate approximately $28 million in revenue, which the council plans to allocate across various sectors, including:
- Doubling investment in city vehicles from $10 million to $20 million.
- Adding $1 million to a small business development program.
- Increasing the public safety overtime budget by $8 million.
- Estimating an additional $6.5 million for utility payments.
In addition to these enhancements, the council reduced some budget items, such as halving the transfer to the Stop The Violence trust fund from $10 million to $5 million and cutting $500,000 from the budget for computers.
Future Implications
Should Mayor Gainey decide to veto any part of the budget, the council has until year-end to override the veto. If he neither signs nor vetoes the budget, it will automatically become law on January 1.
As Pittsburgh navigates this substantial tax hike, residents and leaders alike reflect on its necessity for maintaining essential city services and addressing the financial challenges that have emerged in recent years.
