The Allentown Neighborhood Improvement Zone Development Authority (ANIZDA) has announced plans to allocate nearly $2 million in surplus tax funds to both the state of Pennsylvania and the city of Allentown. During a board meeting held on Wednesday, members voted to distribute approximately **$1.8 million** to the state and **$99,405** to the city, in addition to the **$22 million** returned earlier this spring.
This latest allocation demonstrates a significant growth in tax revenues generated from downtown Allentown compared to previous years. In fact, the area has produced **$1.98 million** more in tax dollars in **2024** than it did in **2011**, prior to the establishment of the Neighborhood Improvement Zone (NIZ). The NIZ is designed to attract development by offering tax incentives, and its effectiveness is increasingly evident through the revenue figures.
For the fiscal year **2023**, ANIZDA reported a surplus of **$9.3 million** in tax revenue, a notable increase from **$2.6 million** in **2022** and **$7.1 million** in **2021**. The year **2020** did not yield any surplus. According to ANIZDA Executive Director **Steve Bamford**, the surplus for this year was lower than in previous years due to a larger allocation of funds toward debt service for developer projects.
In another positive indicator, ANIZDA generated a record **$103.5 million** in tax revenue last year, reflecting a **0.6%** increase from the **$102.9 million** generated in **2023**. The authority is projecting estimated operating expenses of **$1.13 million** for **2026**, with a projected surplus of **$21,177**. This funding is expected to come from the **PPL Center** rental fee of **$150,000** and developer fees, which are anticipated to rise to **$988,734**, up from last year.
The ongoing success of the NIZ highlights the effectiveness of targeted tax incentives in stimulating economic growth in Allentown. As the city continues to attract development and increase tax revenue, the allocation of surplus funds to both state and local governments indicates a commitment to reinvestment in the community and continued fiscal responsibility.
