Answers to Your Tax Collection Questions - Posted 07/31/12
TAX COLLECTION INFORMATION
Over the past several years many municipalities and agencies have changed the individual or company that has been designated to collect tax monies from residents on their behalf. In addition changes in the tax laws have mandated different policies and procedures governing how taxes are collected. The result is that there seems to be some confusion as to who collects what taxes for the residents of Paxtang Borough.
In order to try to set some things straight, the following is a list of the most frequently misunderstood taxes:
Real Estate – These are the taxes paid on the real estate and property that you own. A property owner will get two real estate tax bills per year; one for Dauphin County and Paxtang Borough will come in February, the second for Central Dauphin School District taxes which arrives in July. Both of these are collected by Helen Koser, the Paxtang Borough elected Tax Collector.
Delinquent Real Estate – If you failed to pay either Real Estate tax bill for the calendar year it was due, by December 31st of that year, those bills are forwarded to the Dauphin Tax Claim Bureau for collection. Once forwarded, no payments can be made to the Tax Claim Bureau until February.
Local Services Tax (LST) – This is a flat rate tax of $52.00 that is levied by Paxtang to contribute to the cost of local services. It is levied on everyone who works in Paxtang Borough, including those who are self-employed. The tax is either collected as one lump sum or installments that are broken up based on the frequency that you are paid by your employer. The tax is collected by your employer and forwarded to Helen Koser by your employer's payroll service. Employees contact your employer to confirm that your tax has been deducted, that it was forwarded to the proper collector.
Business Privilege Tax – In Paxtang, Business Privilege tax is assessed on businesses based upon the amount of gross receipts for a given calendar year at the rate of 1 mil. This is also collected by Mrs. Koser.
Business / Property Rental License - In order to operate a business in Paxtang Borough or to rent a home or apartment, it must first be registered and receive a license from the Tax Collector, Helen Koser. This is a yearly fee of $15.00.
Earned Income Tax – Every resident is required to pay a percentage of their gross income to both Paxtang and the Central Dauphin School District. This is normally deducted by the employer and forwarded to the proper collection agency. Prior to 2012, EIT was collected for Paxtang by the Capital Area Tax Collection Bureau (CAPTAX). Central Dauphin School District collected theirs through Berkheimer Assoc. Beginning in 2012, both taxing authorities use Keystone Collections Group. You should check with your employer to be sure that your employer is collecting these taxes and forwarding them, on your behalf, to Keystone Collections Group.
Delinquent Earned Income Tax – If you failed to pay your taxes for the years of 2011 and before to Paxtang Borough, these taxes are now considered delinquent. If you haven't paid you will get a notice from the Borough's designated collection agency. CAPTAX.