The Borough Council unanimously approved an increase to the Realty Transfer Tax from 1.0% to 1.5% on Tuesday, December 21, 2021. The reasoning behind doing so is the following:
- Borough Council found it necessary to raise taxes in order to maintain the high level of service provided by the Borough. Costs have risen since the last tax increase four years ago. The realty transfer tax increase balances the 2022 operating budget while also setting aside some funds for future capital improvement projects.
- By raising the realty transfer tax, the Borough does not need to impose a property tax increase. Property taxes are annual, whereas the realty transfer tax is only paid when the property is bought or sold.
- Lower property taxes are a stronger incentive to home buyers than a lower transfer tax. Also, there are many exemptions to the realty transfer tax, including certain transfers among family members, to governmental units, between religious organizations, to shareholders or partners, and to or from nonprofit industrial development agencies.
The 2022 budget can be found at http://www.malvern.org/general-info/budgets-audits/.
Amy Finkbiner, PhD
Malvern Borough Council