Property tax rates were recently raised for a quarter of Berks County municipalities in Pennsylvania for 2023 so, if you live in some of them, prepare your wallet. The changes in the tax rates affect a large amount of the municipalities in the county, including townships, boroughs, and more subdivisions. As per the end of December 2022, these municipalities had to approve their budgets and set their tax rates for 2023. Most municipalities chose to keep their rates the same, but 18 increased their rates, up from 12 that had raised taxes in 2022.
A mill refers to $1 per every $1,000 of assessed value of a real estate property, as a necessary clarifying before we keep unveiling this tax rates list. The range of tax increases for real estate properties, is from 0.1 mill in Ruscombmanor and Tilden townships to 3 mills in Mount Penn. Hence, a 1 mill tax on a property assessed at $100,000 would equal $100. This means that the 0.1 mill increase in Ruscombmanor and Tilden would raise the tax bill on a property assessed at $100,000 by $10. Similarly, the Mount Penn increase would increase a tax bill by $310 on a home assessed at $100,000.
Other Municipalities to Raise Real Estate Taxes for 2023 in Berks, Pennsylvania
In the list of tax-rising areas are Amity Township, Bally, Bechtelsville, Bernville, Boyertown, Centre Township, Colebrokedale Township, Cumru Township, Fleetwood, Hamburg, Lower Alsace Township, Marion Township, Oley Township, Sinking Spring, and West Reading. However, residents of Upper Bern Township will see their tax bills shrink for the second straight year as the township has lowered its tax rate by just over 10%. The 0.17 mill decrease will cut the municipal property tax bill on a home assessed at $100,000 by $17. Despite this, Upper Bern sits outside of the 10 lowest rates in the county, at number 13.
Earl Township continues to have the lowest municipal real estate tax rate in Berks for 2023, as it does not levy a municipal property tax. Other municipalities with low tax rates include Jefferson Township (0.18 mill), Windsor Township (0.3 mill), Centre Township (0.54 mill), Albany Township (0.6 mill), Perry Township (0.8 mills), Greenwich Township (1 mill), North Heidelberg Township (1 mill), Rockland Township (1 mill), and Upper Tulpehocken Township (1 mill).
On the other hand, the highest rates in the county are in New Morgan (18.6 mills), Reading (18.129 mills), Mount Penn (14.2 mills), West Reading (12.1 mills), Lower Alsace Township (9.85), Sinking Spring (8.79 mills), Hamburg (8.75 mills), Boyertown (8.64 mills), and St. Lawrence (7.68). Municipal tax rates vary widely for a number of reasons such as population density, average assessed property values, number, and types of businesses, and the amount of services provided, which all impact the rate.
Some Particular Berks County Areas With Deferred Real Estate Taxes
For instance, New Morgan’s high rate is due to the borough’s extremely small population. With only 54 residents according to a 2020 census, it’s an outlier. On the other hand, Reading uses its second-highest rate to help fund a nearly $100 million budget that is the largest in the county. Some municipalities also levy property taxes for specific purposes like road construction or to help fund local fire companies, which inflate their overall rates.
Earl Township is an exception, and it can operate without a municipal property tax because its township government is funded by host fees from the Rolling Hills Landfill.
The County of Berks has a complete guide on local real estate and other taxes, how to calculate, how to pay and when are the decline dates. Take a look at it here.