ALLENTOWN, Pa. — Allentown voters appeared Tuesday to have approved a ballot question that authorizes lawmakers to raise the city’s deed-transfer tax rate — and potentially millions in new revenue each year.
Complete but unofficial election results showed just under 20,000 voters supported the measure, while about 17,000 voted against it, a 54-46% split.
The referendum on Allentown ballots asked voters whether to remove an almost-30-year-old cap on the city’s deed-transfer tax.
But its wording was far from straightforward and caused confusion for many voters.
The question asked whether Allentown’s home-rule charter should “be amended to allow City Council … to remove the deed-transfer tax.”
Without much-needed context, voters could have interpreted the question to mean the city’s deed-transfer tax would be eliminated, therefore reducing taxes, if the referendum was successful.
But Allentown City Council now has the authority to raise the tax after voters passed the referendum Tuesday.
Deed transfers on Allentown properties incur a 2% tax, with the city and school district each keeping 0.5%, while the state takes 1%.
That cap was set in 1996 as Allentown adopted its home-rule charter.
Council Vice President Santo Napoli suggested a half-percentage-point increase in the deed-transfer tax could raise an additional $2 million a year.
City Council in July unanimously approved a measure to send the referendum to voters.
The Greater Lehigh Valley Realtors Association strongly campaigned against its the referendum, telling voters its passage would "increase the cost of every house sold, bought or rented."
