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 13.548 mills of real estate tax,
the County levies 7.226 mills, and the Township levies
Real estate taxes can be levied for specific purposes. The Township's 1.3 mills of real estate tax
levy is comprised of 0.941 mills for the general fund, 0.318 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 1.3
mills is one of the lowest of any Central Pennsylvania municipality, and it generates approximately $3.8 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 $6.1 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.
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