The Dallastown Area school board will vote next Thursday on a resolution that says the school district will not seek to raise property taxes above the cap set by the state.

Tax caps are set by the Pennsylvania Department of Education. This year, Dallastown is able to raise its property taxes by 2.6 percent, if it chooses to do so later in the budget process.

But the budget and finance committee recommends that the board pass a resolution stating it will not apply for exceptions, which are approved by the state and allow the district to raise taxes above that percentage for items outside the control of the district, such as pension contributions.

Board member Ron Blevins said the budget and finance committee sees a tight budget forecast ahead, but feels comfortable recommending that the board pass the resolution.

The board will still need to decide at a later meeting how much, if at all, the district will raise property taxes for the coming year.

Donna Devlin, the district's business manager, said the budget is still in the preliminary planning stages, but should be ready for the public to view within the next few weeks.

Tax relief: The board will also vote next week to approve tax relief for a developer through a program called the Local Economic Revitalization Tax Abatement, or LERTA.

The project is the first in the district since it first approved the tax abatement program a year and a half ago, said district solicitor Jeffrey Rehmeyer.

The property, located at 2157 S. Queen St., is in the process of being turned into a hotel, with an estimated increase in value of $8 million.

Rehmeyer said if that estimation holds true, it will be one of the district's top 10 sources of revenue.

According to the LERTA agreement, the development company, Queen Pauline, will pay the current rate of property taxes. When the improvements are completed, the property will be reassessed by the county. The owner will pay an additional 10 percent of the increased rate every year, until the district receives 100 percent of the taxes from the reassessed value after 10 years.

The district will not lose any tax revenue during that time, Rehmeyer reiterated, but the developer will have an incremental increase each year.

LERTA is an agreed-upon initiative by York Township and the Dallastown Area School District.

Rehmeyer said York County will also need to approve the tax relief, but said it typically approves the application if the township and school district have approved it.

Other business: New board members John Hartman and Thomas Nicholson replaced outgoing members Lauren Rock and Don Jasmann.

Kenneth "Butch" Potter and Ron Blevins were reappointed as the board's president and vice president.

The board will vote on the tax items at the next school board meeting, held at 7:30 p.m. Thursday, Dec. 12.

-- Reach Nikelle Snader at nsnader@yorkdispatch.com.