Despite a proposed 14 percent increase in property taxes and a slight rise in real estate transfer rates, Borough Council President Elizabeth Goreham said she doesn't think the higher taxes will have a large effect on rent for students.
"We're thinking it would be relatively small," she said, adding the council is trying to decrease the severity of the tax hike. "Maybe it is [bigger than we imagined it would be]."
The proposed tax increases come as the State College Borough Council attempts to balance a $17.5 million draft budget for 2009 -- a $1.4 million increase from 2008. Aspects of the budget will be discussed at a work session today.
Real estate transfer rates are fees incurred by borough residents when they buy or sell a property. The profits from these fees are shared by the borough and Centre County, Goreham said.
More likely to affect students would be the increase in property tax rates, as property owners may pass along added charges to their tenants in the form of higher rent.
Goreham said the council is working to try to minimize the tax increase's effect on rent.
"There's a lot of interest in seeing if we can't reduce tax increase," she said. "I think the majority of us don't want to be raising costs in an economic downturn."
Council Member Theresa Lafer said that in today's economy, tax and fee increases are an unavoidable component of the budget process.
"We have no alternative. We're required to balance the budget," she said. "Would I like not to increase fees? Yeah, I'd really like that. But we have no other alternative."
