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March 21, 2008
Revenue Trouble in Lebanon County
hat tip to PSOTD.
"Once considered the fastest-growing municipality in Lebanon County, South Londonderry Township is now at a dead stop - and that could mean some budget cuts in the near future, according to one township official. Thomas Ernharth, township manager, told the board of supervisors Tuesday night that revenue from the real-estate-transfer tax dropped significantly in February. A transfer tax of 1 percent of the sale price is assessed whenever real estate is purchased. The township and the school district split the proceeds."For the month of February, we received a total of $4,000," he said. "In previous years, we received twenty to twenty-four thousand a month. That's a significant hit to our budget." Knowing the economy was slow, Ernharth said, he estimated the amount of the tax the township would receive in 2008 at a total of $200,000, or about $16,000 a month. Just two or three homes in the township were sold last month, he said."
Inflation-adjusted housing prices in Lebanon increased by .4% from the 4th quarter of 2006 to the 4th quarter of 2007. If the pace of sales in South Londonderry township is representative of sales in the rest of the region it looks like we can expect price declines in the 1st quarter of 2008.
--Mark Price
Posted by Price at March 21, 2008 04:40 PM