Council Chooses Berkheimer to Collect Local Services Tax, Business Privilege Taxes

By Christopher Miller

LOCK HAVEN – With the Keystone Central Tax Office no longer collecting Earned Income Taxes (EIT) on behalf of the Clinton County Tax Collection Committee, the City of Lock Haven unanimously voted to choose Berkheimer Digital Tax Solutions as the collector of the city’s Local Services Tax and Business Privilege Tax.

Currently, the Keystone Central Tax Office charges a 5% fee for the collection of current and delinquent Local Services Taxes including postage. Under the new collector, Berkheimer will charge 1.75% for current and delinquent Local Services Tax collection plus postage.

The Business Privilege Tax, under Keystone Central Tax Office, was charging 5% for both current and delinquent taxes including postage. Under Berkheimer, the fees for current and delinquent taxes will be 2.25% plus postage.

The other tax collector being considered, Keystone Collections Group, proposed to collect 1.75% for current taxes and 0% for delinquent Local Services Taxes, and 3% current and 6% for delinquent taxes plus postage for the Business Privilege Tax.

A city taxpayer brought up a question regarding litigation fees to be billed to the city, should Berkheimer need to be involved in litigation to collect taxes. City Manager Greg Wilson recalled that during his time as City Manager, the city has not gone into litigation with any tax entity.

In other news, council member Steve Stevenson was recommended to be the legislative liaison to the Pennsylvania Municipal League.

Greg Wilson provided a 6-month city budget update, saying that 82% of real estate taxes were paid in full during the discount period. He also mentioned that the total annual tax collection rate has increased from 87% to 95% in the year it was due.

He also mentioned that wages and benefits were slightly below 50% for the year, and the airport and water fund are showing deficiencies.

“Water bills beginning July will be the first bill of the 100% new rate, so we will see a larger increase in water revenue,” Wilson said.

City council also voted unanimously to apply for financial assistance in the amount of $8.8 million dollars from PennVEST for the purpose of financing/partially financing the construction of the City of Lock Haven Youngdale Well Field Development and Raw Water Transmission Main Project.

The most expensive portion of the project, the raw water transmission main, carries a price tag of $2.7 million dollars, well drilling, testing, and development comes in at just above $1.5 million.

When completed, annual operation and maintenance costs are estimated to be around $265,000.

“Between 40% and 50% of the project will be reimbursed by Suburban Water Authority,” Wilson said.

Council member Jeff Brinker was absent from Monday’s meeting.