East Stroudsburg seems determined to burden its residents with a staggering 29% property tax hike—one councilwoman even proposed raising it to 40%. It’s as though this borough has never met a property tax it didn’t like.
At the December 2024 East Stroudsburg Council meeting, residents were presented with a dog-and-pony show about the “proposed” budget. Yet, amidst all the talk, no one suggested addressing the borough’s growing fiscal crisis by holding tax-exempt properties accountable. Properties such as hospitals, East Stroudsburg University, government buildings, and other so-called nonprofit or for-profit operations collectively account for over $3 billion in tax-exempt value. Instead of seeking contributions from these entities, the council seems content to push hard-working residents to the brink.
Other municipalities in Pennsylvania have successfully challenged the tax-exempt status of certain properties through lawsuits, resulting in these entities paying their fair share of property taxes. These court cases have revealed that many "nonprofit" properties operate as for-profit enterprises and should no longer evade their civic responsibilities. Yet, East Stroudsburg Council has made no move toward such litigation or advocacy.
Compounding the issue is the inaction of the Pennsylvania Legislature. A pending bill, House Bill No. HB 451, has been gathering dust since May 2024. This legislation would establish a dedicated funding source for municipalities where 15% or more of the total assessed property value is tax-exempt. It aims to provide much-needed financial assistance to communities like East Stroudsburg, which struggle to fund essential services due to a depleted tax base.
Municipalities across Pennsylvania face the same challenge. Towns with a high percentage of tax-exempt properties—such as colleges, nonprofit hospitals, government buildings, and state game lands—are forced to provide services with significantly reduced revenue. HB 451 proposes the creation of the Tax Exempt Property Municipal Assistance Fund, funded by Pennsylvania’s 18% liquor tax. This tax has a history of supporting communities, dating back to its use in rebuilding Johnstown after the devastating 1936 flood. Redirecting this revenue to financially distressed municipalities would provide a lifeline, enabling them to maintain basic services and stabilize their economies.
It’s long past time for the Pennsylvania Legislature to prioritize the needs of its residents. While lawmakers are busy debating nonessential issues, property taxpayers are drowning under the weight of rising taxes. The state has an obligation to act—whether through legislation, litigation, or both—to reduce the financial burden on overtaxed communities.
The current situation is unsustainable. If lawmakers fail to address the growing crisis, they may soon find themselves facing the wrath of their constituents. Property taxpayers are reaching their breaking point, and unless real action is taken, the pitchforks and torches won’t be far behind.
Wake up, Pennsylvania. The time for change is now.