Local government has been challenged by the increasing amount of property that is tax exempt. In 2004 it was reported that 49.3% of the properties were exempted from paying taxes. This includes the land owned by Susquehanna University, the land held by local churches and the campus of the Selinsgrove Area School District. The borough has been facing a continued decrease in the value of the taxable real estate for many years. The borough has requested "payment in lieu of taxes" from the exempt entities with limited success. There have also been several successful property tax assessment challenges that have decreased tax revenues.