The 18.6% Question: Is Olean Pushing Property Owners to the Brink?

By Paul Pezzimenti, GRI

If you haven’t seen the news from the Olean Star recently, the proposed city budget for 2026 includes a staggering 18.6% property tax hike. As someone who lives, works, and invests right here in Olean, I believe we need to have a very serious conversation about the direction this puts our community in.

Here are my thoughts on why this proposal is a major red flag for our local real estate market and our residents. Even with New York State coming to our aid with nearly $800,000, the fact that our first move is to look to the taxpayer is my primary concern.

1. We Are Already Above the National Ceiling

It is no secret that Western New York has some of the highest property tax burdens in the country. When you compare our local rates to the national average, we aren’t just "higher"—we are in a different stratosphere. Every time we hike these rates, we reduce local families' buying power and make Olean less competitive for young professionals looking to move here. We are reaching a point where the tax bill is becoming as significant a factor as the mortgage itself.

2. Understanding the "Tax Hike" Illusion

I think there is a major misconception in the public right now regarding this 18.6% figure. It’s important to clarify: This hike applies specifically to the City portion of your tax bill. Your total tax liability consists of City, School, and County taxes. While an 18.6% jump in the City layer is massive, it doesn't mean your entire annual bill goes up by 18.6%. However, for many homeowners already on a fixed income or tight budget, any increase of this magnitude is notable. For example, in 2026, a house assessed at $100,000 has a total tax liability of $5,611, with $2,718 for school tax, $1,120 for County tax, and $1,775 for City tax. Under this new proposal, the city tax would go up to $2,106, and the total tax liability would be $5,942.  So effectively, it is a 5.9% increase in your total tax liability. The best Olean Home Selling Guide is available for download right here for more details: Home Selling Guide

3. We cannot Keep Defaulting to the Property Owner

For too long, the default "easy button" for balancing the budget has been to put the burden on property owners. This is a narrow strategy. As a real estate professional, I see the downstream effects: it discourages property maintenance, scares off investors, and makes it harder for landlords to keep rents affordable for tenants.

We should be looking at significantly more aggressive ways to raise revenue before we reach into homeowners' pockets.

4. Looking for Real Solutions

Instead of another hike, we need to be talking about:

• Aggressive Economic Development: We need to fill our vacant commercial spaces to expand the tax base and share the burden among more entities, not just existing residents, especially property owners.

• Regional Shared Services: Are there other ways we can partner with neighboring municipalities (such as the Town of Olean, Bonas, Allegany, or Catt County) to reduce administrative overhead?

• Grant-Funded Infrastructure: We should be doubling down on state and federal grants for capital projects rather than relying on local property levies.

The Bottom Line

I love this city, and I want to see it thrive. We need to find a path forward that focuses on growth and revenue generation rather than just increasing the "Olean Tax."

I’d love to hear your thoughts.