Highlands agrees to state cap on any property tax increase

Highlands School District will not increase its property tax rate by more than its state-imposed limit for next school year.

The school board certified this week that the district will not increase property taxes by more than 4.3%, the inflation limit set for the district by the state under Act 1.

That does not mean a tax increase of any amount is certain. The action means the district will not seek to raise the tax rate by more than its limit through a voter referendum or by applying to the state Department of Education for exceptions to a referendum.

School districts are required to pass such a resolution, or make a proposed version of a preliminary budget available for public inspection, by Jan. 28, according to the state’s Act 1 timeline.

The statewide base index for 2021-22 is 3%, up from 2.6% for 2020-21. The limit is adjusted for each school district.

In the Alle-Kiski Valley, Allegheny Valley, Fox Chapel Area and Riverview are at the 3% base. Apollo-Ridge and New Kensington-Arnold have the highest adjusted index at 4.4%.

Highlands’ limit is up from this school year’s rate of 3.7%. The district did not increase property taxes in its $48.5 million budget, maintaining a tax rate of 24.88 mills.

The 4.3% limit would allow Highlands to increase the property tax rate by up to about 1.07 mills, for a total of about 25.95 mills.

School districts have to pass proposed versions of final budgets no later than May 31. The deadline for districts to adopt their final 2021-22 budgets is June 30.