Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
Williamsport treasurer reports $851,000 in unbudgeted 2024 revenue, warns state cap limits local service tax growth
Summary
City treasurer Kevin Mackey told council his office collected roughly $851,000 more than budgeted across multiple taxes in 2024, and urged state action on a $52 cap that has left local service tax revenue effectively frozen since 2009.
Williamsport City Treasurer Kevin Mackey told council on Jan. 16 that his office recorded roughly $851,000 in unbudgeted 2024 revenue across the city’s tax streams and urged state lawmakers to address a long-standing cap on the local service tax.
Mackey said realty transfer tax exceeded budget by $99,665.76; delinquent taxes collected by the Tax Claim Bureau exceeded budget by $311,307.90; earned-income tax collections exceeded budget by $173,249.72; city real estate taxes exceeded budget by $154,353.46; local service taxes exceeded budget by $11,208.97; and mercantile and business privilege taxes exceeded budget by $105,254.37. He also told council the treasury is turning uncollected 2024 real estate taxes over to the Tax Claim Bureau.
Why it matters: Mackey said one of the persistent constraints on local revenue is a statewide statutory cap on the local services tax set in Harrisburg. That cap fixes the per-worker levy at $52 per year and, he said, has not changed since 2009. Mackey warned the city is effectively operating on 2009 revenue levels while costs have risen.
Mackey framed the figures as finalized for 2024 and contrasted them with the 2024 budget approved in 2023. “This marks another year where my office collected more than what we budgeted for and recorded around $851,000 of unbudgeted revenue between all the taxes that we do,” he said. He said Keystone Collections will serve as the 2025 collector for the earned-income tax.
Mackey told council the local service tax is not indexed to wages or inflation; it rises only if more people work in the city’s limits. “We are operating off a revenue from 2009 for costs that are almost 18 years out of date,” he said. “With an inflation rate of 51% since 2007, we cannot continue to operate off of hard caps.”
Mackey also highlighted growth in the mercantile and business privilege tax, noting the city has hit $3 million in revenue from that source for the second year running and that enforcement activity has increased. He said his office has cited 87 entities for noncompliance and set aside funds to pursue enforcement, and that receipts from enforcement can be recycled into the budget.
Council members asked whether local action could raise the $52 local service tax; Mackey said the cap is statewide and set in Harrisburg, so raising the per-worker amount would require state legislative action. Councilmembers and administration officials discussed coordinating outreach to state representatives.
Council took two formal votes tied to the treasurer’s report. The council passed a resolution exonerating the treasurer from collection of uncollected 2024 real estate taxes (motion approved 6-0) and a resolution to turn those uncollected taxes over to the Tax Claim Bureau for collection (motion approved 6-0).
Mackey closed by urging greater coordination between the city, business groups and state representatives to seek changes or additional resources. “The city can’t continue piling its financial burden onto real estate owners,” he said. “We can’t keep waiting for Harrisburg to update a tax cap from 18 years ago.”
The council did not take further action on a state-level remedy during the meeting; Mackey said he has spoken with Representative Jamie Flick and requested broader constituent support to seek change in Harrisburg.
