There are three "local" authorities with the power to tax; the municipality, the county, and the school district. Each of these local authorities has the power to levy different types of taxes. A resident of Lower Paxton Township is subject to a "real estate" tax levy by the Township, Dauphin County and the Central Dauphin School District; an "earned income tax" levy by the Township and School District, and a "local services tax" levy by the Township.
Real Estate Taxes:
All real property (land and improvements) within Lower Paxton Township, except government and church facilities, is taxed by the Township, County, and School District. Real estate tax levies are in tenths of a cent, a unit in tax parlance referred to as a "mill." Such levies are multiplied by the assessed value of real property, as determined by the County Assessment Office, to compute real estate tax payments. 1 mill = $1 of tax per $1,000 of assessed value (.001 X $1,000 = $1.00).
Chart 1 - Total Real Estate Levy
Lower Paxton Township property owners are paying total real estate taxes based upon assessments effective January, 2002. The School District levies 14.8622 mills of real estate tax, the County levies 7.226 mills, and the Township levies 1.95 mills.
Real estate taxes can be levied for specific purposes. The Township's 1.95 mills of real estate tax levy is comprised of 1.554 mills for the general fund, 0.355 mills for fire protection and 0.041 mills for library service. The County's 7.226 mills of real estate tax levy is comprised of 6.876 mills for the general fund and 0.350 mills for library service.
The Township's real estate tax rate of 1.95 mills is one of the lowest of any Central Pennsylvania municipality, and it generates approximately $6.7 million each year.
Earned Income Tax (EIT):
The earned income tax is in the amount of two percent of gross income and is split between the School District (1 1/2%) and Township (1/2%). The Township's earned income tax levy (EIT) generates approximately $6.5 million per year. Local income tax returns for each calendar year must be filed with the tax collector by April 15th of the next year.
Local Services Tax (LST):
The local services tax levy is $52.00 per year for each individual who works within Lower Paxton Township. Individuals earning less than $12,000 per year from all sources are exempt from the LST.
Real estate taxes in Lower Paxton Township are collected by elected Tax Collector, Diane Bair, whose office is located at 4919-C Jonestown Road, Harrisburg, PA 17109, telephone number 652-5555. The elected Tax Collector serves a term of six years and is governed by the Second Class Township Code and the Local Tax Collection Law.
Lower Paxton Township's collector for the earned income tax (EIT) and local services tax (LST) is the Keystone Collections Group, telephone number (888) 328-0557, web site www.keystonecollects.com. Tax payments may be mailed to 2330 Vartan Way, Suite 155, Harrisburg, PA 17110.
Chart 2- Hypothetical Computation
How your taxes are computed - an example:
Suppose you and your spouse live and work in Lower Paxton Township. The two of you have a combined annual income of $100,000 and a house and property assessment for of $200,000. The following are the taxes that you will pay to the three governing bodies.
|LOWER PAXTON TOWNSHIP|
|Real Estate Tax:|
|1.554 mills (general)||$ 310.80|
|.355 mills (fire protection)||$ 71.00|
|.041 mills (library service)||$ 8.20|
|LST - $52 per employee||$ 104.00|
|EIT - ½% of $100,000||$ 500.00|
|Total Township Tax||$ 994.00|
|CENTRAL DAUPHIN SCHOOL DISTRICT|
|Real Estate Tax 14.8622 mills||$2,972.44|
|EIT - 1½% of $100,000||$1,500.00|
|Total School District Tax||$4,472.44|
|Real Estate Tax:|
|6.876 mills (general purpose)||$1,203.30|
|0.350 mills (library service)||$ 61.25|
|Total County Tax||$1,264.55|