Residents in the Pottsville suburb of Palo Alto can expect to see a property tax increase in 2026.
On Monday, Borough Council members approved a preliminary budget that calls for a 10% increase on property taxes. The new millage, if the budget passes a final vote later this month, will be 2.911.
That means, for every $1,000 in assessed value, a property owner will have to pay $2.911. A property valued at $100,000 would have the owner paying $291.10.
Palo Alto’s equalized millage rate, a requirement following the countywide property tax reassessment, at 2.647.
By law, municipalities must set an equalized or revenue-neutral millage compared to 2025 property tax revenue. They can then vote to increase that new equalized millage by 10%. The equalized millage rate is determined by calculating what figure will generate the exact same property tax revenue in the year after a reassessment as a municipality collected under the final year of the previous assessment.
Last year, Palo Alto’s millage was 14.
Prior to the reassessment, Palo Alto’s property tax base (the value of all taxable properties in the borough) was $11.1 million. Post-reassessment, the new base is $58.7 million.
Palo Alto Budget Details
Palo Alto’s $642,656 spending plan in 2026 includes the following major expenses:
- Finance: $120,469
- Public property: $183,827
- Public safety: $169,735
- Streets: $155,125
- Recreation: $13,500
The Borough is currently entering the second year of a five-year inter-municipal agree with Saint Clair to provide it with 24-7 police coverage. This year, Palo Alto will pay $136,500 to Saint Clair.
The Borough expect to receive $260,201 in property tax revenue in 2026 and $642,656 in overall revenue. To arrive at a balanced budget, the Borough says it is transferring $124,291 from its savings.
The tax increase is expected to net the borough $15,499 in revenue.
First Tax Increase in 5 Years
Council President Brian Dries explained that this is Palo Alto’s first property tax increase since 2020.
He said Monday that going into the budget preparations for 2026, he knew a tax increase was inevitable.
Dries explained that the borough’s expenses have only increased. For instance, in 2020, Palo Alto was paying $62 per ton for rock salt. It’s now paying a little more than $90. The Borough says it goes through about 150 tons of rock salt in an average winter.
“This budget is pretty bare bones. There’s some meat on the bones but it’s not like we’re just going out and spending willy-nilly,” Dries said.
The Borough plans to pave “a street or two” next year.
Dries also said that one of Palo Alto’s biggest expenses annually – paying for police protection – is the Borough’s most important function.
“Public safety is probably the most imperative thing that we do,” he said.
Mayor John Deatrich said he believes Palo Alto is “doing little things to consistently move forward and not fall backwards.”
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