Keystone Central’s Business Privilege Tax debated at school board session

BALD EAGLE TOWNSHIP, PA – Keystone Central School District’s better than 50-year-old business privilege tax was a prime top of discussion at the district school board’s work session Thursday night.

A resolution to expand enforcement of the tax is on the agenda for the school board’s voting session on Oct. 12. It would allow the district tax office to enforce violations of the tax by either civil complaint or criminal proceedings; presently only civil complaints are enforced for the tax.

The tax rate is 1.5% of gross receipts for businesses within the school district; 11 municipalities also take a share of the tax. They are Lock Haven, Beech Creek Borough, Loganton, Flemington, Mill Hall and the townships of Bald Eagle, Dunnstable, Greene, Pine Creek, Porter and Woodward.

Board member Elisabeth Lynch broached the subject, noting next week’s resolution would give the district tax office more powers when she said the district “should be discussing an end” to the levy which produces $1.5 million in annual   revenue for the district.

As imposed, Lynch said, the tax generates $150 in tax revenue for every $1,000 in gross receipts. Fellow board member Butch Knauff corrected her to note the tax generates $15 for every $1,000. The Mill Hall area representative claimed imposition of the tax creates animosity towards the district and wants an end to the BPF.

Board member Knauff and others said that if the district no longer imposes the tax, the entire 1.5% proceeds would go to the 11 municipalities also collecting the tax. Knauff said the district would have to make up the $1.5 million in lost revenue, indicating a greater burden would fall on property owners, “instead of WalMart,” one of the businesses which pays the BPF. Board member Jeff Johnston agreed with Knauff, pointing out the full 1.5% BPT would still be paid by the business community while property owners likely would be looking at making up the difference in BPT money lost by the school district.

The discussion prompted Superintendent Jacquelyn Martin to say it is time to stop burdening the taxpayer, again leveling criticism at the state for what she called “unfair funding.” She noted school districts across the state are seeing allocated dollars held back in Harrisburg because enabling legislation has not been approved and urged community members to “talk to your legislators” about the issue.

The meeting saw a new twist at its outset, the superintendent calling on district officials to offer “shout outs” to highlight positives within the district with the start of the new school year. They ranged for compliments on how well students have responded to stricter enforcement of the district’s cellphone use policy to praise for “Bus driver Joe” from bus #88 who shared his bus driving past for rock bands from Styx to Motley Crue.

The 90-minute board meeting ended with an executive session in which board members were to go over the contract for a prospective new assistant superintendent. Superintendent Martin indicated with board concurrence, that person will be hired at next week’s meeting.