City Council Unveils Tax Changes: What It Means for Lock Haven Businesses and Residents
By Emily Wright
LOCK HAVEN— During the Lock Haven City Council meeting on Monday, January 6, the 2025 municipal tax form was briefly presented to the council and the public for informational purposes, as the city is required to review and confirm tax rate details by January 15 every year to comply with state law.
The annual municipal tax form shows the city’s millage rate as well as other taxes collected through the Pennsylvania Department of Community and Economic Development (DCED).
Starting in 2025, Lock Haven residents will see some changes in their municipal taxes. Key changes include adjustments to tax rates for both land and buildings. The general tax rate on land has decreased from 29 mills to 20 mills, while the rate for buildings and improvements has increased from 7.5 mills to 9.8 mills. These changes aim to balance the overall tax burden while addressing local funding needs.
The General Purpose Blended Tax Rate, which is a combined rate applied to both land and buildings, will increase from 11.2481 mills to 11.5796 mills. This rise means property owners will pay slightly more in taxes, helping to generate the additional revenue needed to fund essential local services and infrastructure projects that benefit the community.
Earnings-related taxes have also been updated. The earned income tax for residents will see an increase from 0.5% to 1%, which means residents will pay slightly more on their earnings. Additionally, the Local Services Tax is set to rise from $47 to $52, impacting individuals working within the municipality.
According to the 2025 municipal tax form, businesses are set to experience changes in their Mercantile/Business Privilege Tax rates, which vary depending on the type of operation. Retail businesses will see their rates double from 0.75 mills to 1.5 mills. For wholesale businesses, the tax rate will increase from 0.5 mills to 1 mill, meaning they will pay more than double on their taxable sales. On the other hand, businesses classified under “Other” will maintain their current rate of 1.5 mills.
