On August 4, Towanda voters will have the opportunity to consider a 1.5% sales tax to fund improvements in City streets and sidewalks, as well as public safety efforts, such as development of a Towanda Police Department.

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The City current has two 1% sales taxes in place.

• One was approved in November 2025 to help fund water system improvements, and will run until early 2036.

• The other was approved in 2016 to assist with several types of general fund expenses, and has allowed Council to keep property taxes about 18 mills lower than if it was not in effect. This tax will end February 28, 2027.

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The Streets & Safety Sales Tax will help fill that gap with a dedicated funding source to pay for local law enforcement, strategic street repairs and maintenance, and potential sidewalk systems. These services currently are paid out of the General Fund, and having a dedicated sales tax funding source will take pressure off of that fund and avoid the need to significantly raise the mill levy.

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If the sales tax fails, the City will lose approximately $170,000 - $180,000 in annual revenue and must either raise the mill levy to replace the sunsetting sales tax or cut services.

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Tax Facts

• The 1.5% sales tax would raise $255,000 to $270,000 per year

• Funds could only be used for streets, sidewalks, and public safety

• The 2026 City budget anticipated $145,000 for law enforcement services and $65,000 for street reserves, but these budgeted amounts compete with other needs in the General Fund
   

Sales Tax versus Mill Levy

• The proposed sales tax brings in more revenue (estimated $255,000 to $270,000 per year) than a 20 mill increase (approximately $211,500)

• The sales tax would provide relatively stable funding for the next 10 years (March 1, 2027-February 28, 2036)

• The sales tax provides dedicated funding to make progress on street repairs and law enforcement coverage

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