Millersburg Borough Tax Information
In order to support the important work of Millersburg Borough, a number of taxes are levied upon Borough residents and property owners. This page is intended to help our taxpayers understand local taxation and pay the appropriate amount of taxes each year. Every autumn, the Borough Council, with the support of Borough staff members, establishes a budget for the upcoming year. Council members and staffers are sensitive to citizens’ concerns about tax rates and we endeavor to only collect enough tax revenue to fund necessary expenditures.
Real Estate Taxes
As authorized under the PA Borough Code, the Borough of Millersburg levies a tax on the assessed value of real estate in the Borough. The taxation rate, known as the “millage” rate, is set by ordinance every year upon completion of the budget. This tax represents the largest source of the Borough’s tax revenue. Currently, the Dauphin County Treasurer’s Office serves as deputy tax collector for Millersburg Borough. Real Estate bills are typically generated in February. If you are a tenant, your landlord is responsible to pay the real estate tax and the tax is reflected in your rent.
In addition to the Borough real estate tax, the tax bill includes a separate “fire protection” tax that helps to support the Millersburg Fire Company as well as the real estate taxes that are levied by Dauphin County.
Property owners also receive a tax bill from the school district in July. This tax supports Millersburg Area School District rather than Millersburg Borough.
Certain property owners and renters may be eligible for a rebate through the Commonwealth of Pennsylvania. Please follow the link for additional information.
Earned Income Tax
The Earned Income Tax is the second largest revenue stream for the Borough. Taxpayers who work for an employer should have this tax deducted automatically. Self-employed earners must pay the tax as well. The tax equals one percent of earned income, with one-half percent remitted to the Borough and the balance to the school district.
Currently, Keystone Collections Group serves as earned income tax collector for all taxing authorities in Dauphin County. Payments may be made to Keystone and wage earners can file their annual tax returns on Keystone’s website. The tax collection process and necessary audits are overseen by the Dauphin County Tax Collection Committee under the terms of PA Act 32.
Local Services Tax
The Local Services Tax is another important source of revenue for the Borough. The current rate is $52 per year. Wage earners have this tax deducted from their paychecks. If you work multiple jobs and/or earn less than $12,000 per year, you will need to fill out an exemption form. This form is available at the Borough Office. Self-employed individuals should remit this tax to Keystone Collections Group.
Per Capita Tax
The per capita tax is a $5 tax owed by all adult residents of Millersburg Borough. This tax is billed on the same tax bill as the school district’s personal taxes. Anyone making less than $3,000 is exempt from the school district’s occupation tax, but the $5 Borough per capita tax and two $5 taxes owed to the school district are still due to be paid regardless of income. Exemption forms are available at the Borough office or at the link below. If you need to file an exemption for prior years, you may use this form and change the dates on the “Total Amount of Earned Income” line.
Cable Franchise Fee
Under the terms of the federal Cable Communications Act of 1984, the Borough has elected to collect five percent of gross revenues on the cable television portion of residents’ cable bills. Generally, this will appear as a charge on your bill for cable television. This fee is charged to the cable company for use of rights of way for cable lines.
Public Utility Realty Tax
The Commonwealth of Pennsylvania charges a Payment in Lieu of Taxes for real estate used by certain utility companies. This revenue is then remitted to the host municipality. Read more here.
Foreign Casualty/Foreign Fire Insurance
If you have a liability insurance or fire insurance policy that was written outside of Pennsylvania, a tax is levied on the premium. By Commonwealth statute, the tax revenue from the liability (casualty) policies is paid to municipalities to defray employee pension costs. The revenue from fire policies is directed to the fire company relief association.
Alcoholic Beverage Tax
An annual tax of $200 is levied on each alcoholic beverage license held in the Borough.