Highlands School Board accepts limit on property tax increase

Property taxes in the Highlands School District will not increase by more than 3.7% in the 2020-21 school year.

The school board voted unanimously Tuesday not to exceed its state-imposed inflation limit.

Under the state’s Taxpayer Relief Act, also known as Act 1, the board is required to make that declaration or approve a preliminary budget by Jan. 9, business Manager Lori Byron said.

The deadline is earlier in 2020 because of the state’s primary is earlier due to the presidential election. The early deadline comes before the board’s January meeting, she said. Pennsylvania’s primary election is April 28.

The board’s vote does not mean property taxes will increase by that amount or at all. It only sets a cap on any potential property tax increase. The school board will decide later to approve the district’s budget for the 2020-21 school year and set a tax rate.

By accepting the limit, the district will not be able to increase taxes by more than its limit through a voter referendum or by asking the state for exceptions.

The statewide base cap for 2020-21 is 2.6%, up from 2.3% for 2019-20. The limit is adjusted for each school district.

Highlands’ limit increased from 3.3% for 2019-20 to 3.7% for 2020-21.

For the current school year, the board approved a 1% property tax increase, increasing the tax rate from 24.63 mills to 24.88 mills.

According to the state Department of Education, the school board will have to adopt the proposed version of the final 2020-21 budget no later than May 31. The deadline to adopt the final budget is June 30.