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Stephen Poorman
Lock Haven
Thank you to folks who enjoyed articles about people and places in "Old Town," Lock Haven's ("LH") original name.
Years ago, I audited LH expenses. But little weight is often given to historical performance and destructive actions unless young people get involved.
Everyone should be made aware of numbers that affect them. Property owners should understand why taxes skyrocketed.
As a member of the Pennsylvania Retailers Association Board of Directors, we studied influencers and I brought results to the city so it might minimize negative impacts. Some were skeptics, some were actually sleeping and some believed LH was immune from the forces. So, little was done and more taxes and regulations were imposed.
A "business privilege tax" is a local tax charged by municipalities or school districts for the privilege of doing business within borders. When no one's listening, they call it a "nuisance tax." True, by law, it's not a 'right' to do business -- but a privilege.
But, it became an administrative nightmare and an unfair, mandatory overhead expense.
In the 1980's, only merchants were taxed; that was unfair. I gave LH a copy of the Act and instead of working to make it fair, it greedily expanded the Business Privilege Tax, excluding a few exemptions allowed by law.
We all want to support needed services delivered with fiscal responsibility. So, once again, I recently snooped into our school district to find that in 2025, its tax office paid $191,520 of wages, plus staggering legal fees for amounts, in excess of $30,000! Then you bear the cost of collection firms like Berkheimer in addition to fees from data systems.
Just as some want a name change from ICE to NICE, the government changed the name of the tax from mercantile to business privilege because it sounds friendlier. Yet, it injures small operations because it's based on gross receipts, so even if a firm makes no money, it pays. It's no different than paying for a milkshake at Dairy Queen but not drinking it.
Behind closed doors, they wonder, are taxpayers stupid as they demand the submission of more and more paperwork? Worse, the nuisance tax overlaps jurisdictions, is complicated and drafters realized they created a mess so they imposed restrictions. Most don't need to pay it at all and some overpay! The motto is, "let's bill it all and see who pays." But if they don't pay, we'll sue'em -- and they do.
They can talk and talk all day long, but this is how it's perceived and why many areas do not collect. But in Clinton County, where it's reported we have a poverty rate higher than the national and state averages, and are among the lower-income counties in Pennsylvania, we'll "give it a shot."
Afterall, there are 18 ways to collect money for nothing -- not including the Occupation and Per Capita Tax, or Head Tax, levied on adults over 18. They got rid of some and imposed others so they can now pick from amusement taxes that allow them to collect if you are admitted to a theatre, ski resort, racetrack, etc. or a local service tax and per capita tax -- simply for existing. They can collect if you put a quarter in the juke box, shoot a game of pool or dance. And don't think that hidden taxes aren't levied from the courthouse to the codes office; these hidden costs are all tax increases.
More progressive areas eliminated ALL kinds of parking fees and nuisance taxes to stimulate business growth. But instead, the city and KCSD took a different turn, smelled an "open pocketbook" and the hell with economic growth.
Politicians and paid staff may argue the business pays it -- but we're not morons. We know it's all passed on to YOU.
LH financially abused landlords for years, so they passed the cost on to you in the form of higher rents. No one escapes the "stinkin thinkin" of those who want to grow government at your expense. So, can anything be done? Absolutely!
When elected officials blab on about the importance of small businesses to the economy, it should cause regurgitation.
It's time to recognize the small business owner is a crucial part of the puzzle. As retail sales dove down from $18 million between Jay Street and Mill Street to Bald Eagle Township and the internet, an erosion of buildings, exodus of businesses and higher taxes followed, and income shortfalls were passed along.
It is important to understand that as commerce declines, its shortfall, directly or indirectly, is dumped on the backs of residential property owners, tenants and seniors.
Do you think we're immune? What about the firm willing to dump over $10 million to build 14 senior rental units two years ago at the vacant Dickey School that KCSD closed? Can you imagine the amount of tax the city, county and KCSD would have received annually? Can you imagine the wages that would have been generated? Imagine this: A 1-bedroom senior apartment required three off-street parking spaces; they've now changed the law to a requirement of .75 of a vehicle. Did anyone "close the barn door after the cows are out?"
Imagine this: One lone councilperson halted the taxable project and needed housing so they could boost re-election odds with a platform of "listening to the objectors." And, there will inevitably be some objectors.
Former President Reagan's most terrifying eight words in the English language were on point: "I'm from the Government, I'm here to help."
While I've concluded that most local politicians are honest and serve out of concern for the community, there can be non-elected staff-thieves in the bunch! I once reported 20 goofy LH misrepresentations.
Well-intended leaders could do much more to lighten the load for people trying to maintain a home. But we are a bit behind the times. I pleaded with the city 20 years ago to allow building murals and they fought the concept. Now they're flying up all over town. And there is little difference with the one-armed-bandits you stuff with coins to park along state-owned highways.
My audit revealed the parking meter income was tweaked to hide losses and pay staff as they damaged small businesses and pissed everyone off in the process. I'll copy that finding here:
17. "I again reviewed parking meters/fines and lobbied the city to calibrate meters, install
15-minute free-parking buttons and undertake a free-parking trial period -- which revealed parking meters drive consumers out of downtown without the benefit of "moving traffic."
While the city now must calibrate in-house, meter No. 81 with a 15% error factor -- I always suspected they were stealing your coins. Nonetheless, the (former) City Manager was quietly soliciting bids to purchase new meters. But the city's eight-year-old Downtown Parking Review concludes its parking program is to "encourage turnover in congested traffic areas." When in reality, it is strictly designed to feed government employees. Its own data reveals a whopping 68% of collections pay enforcement and half the coins are collected on Main Street. Yet, there is no Main Street congestion."
I peeked again last week but city data isn't 'reader-friendly.' Yet, it appears LH collected $93,854.00 in parking tickets in 2025.
Every city is different. Brandon Carter, our new City Manager, is from Charleston, S.C., where they have parking meters too, but with garage parking and meters that utilize credit cards, smart cards, Flowbird apps and text options. However, its downtown streets are packed daily with millions of tourists to visit the historic district and market. In that area, a home is a half million dollars and rent is four times the Lock Haven rate. Yet, our city council determined that since State College, with similar demographics, has meters, Lock Haven should have meters. Duh...
It appears we operate about 20 years behind the time in thinking about economic growth. And, while fraud and abuse may occur more on the national scene, it was troublesome to review an actual report to learn that in Lock Haven, with some meters, you pay for an hour and only get 45 minutes. Does that bother you?
Did you find it hysterical when LH wanted to build a new city hall! Mayor Long was one of the few elected officials who saw how nonsensical that moronic idea was and he, and some others, saved you millions of dollars. Yet, the city made 13 payments to Buchart Horn, a York architectural/planning firm, for at least $36,918 to study the idea. Did we need that out-of-town bunch to tell us how stupid it was?
It's possible that $13,877,360 could have flowed into city coffers last year and YOU deserve data that real business enterprises might call a quick report to summarize where YOUR MONEY went.
Local government will only change when younger people become involved. Whatever your political stance might be, money should not be squandered. YOU need to get involved, attend meetings and ask questions.
Those in control could eliminate nuisance taxes, sell parking meters, lower fines, stop gifting Lowes, Walmart and hotels free taxes for 7 to 17 years, approve simplified small business loans, eliminate ridiculous codes to encourage the affordable development of upper floors in the CBD and demand PennDOT curtail Main/Church Street raceways or toss them out of town. Start by attending city council meetings.