Transcript Perry County Tax Collection Committee Act 32

Perry County
Tax Collection Committee
Act 32
Act 32
• New law which overhauls earned income tax in
Pennsylvania – signed into law on July 2, 2008
• Will affect taxpayers, employers, PSD, tax
collectors
• Applies to every county except Philadelphia
• Reduces number of collectors from 560+ to 69
• One tax collector per each Tax Collection District
Perry County Tax Collection
District (TCD)
• All of Perry County; Greenwood Twp.
(Juniata County); Reed Twp. (Dauphin
County)
• 36 members of TCC
• 4 School Districts 32 municipalities
• All members currently have their taxes
collected by CTCB
New Government Entity – TCC
• Perry County TCC is a new government entity
• TCC governs and oversees how earned income
taxes are collected in Perry County TCD
• Requires immediate school district and
municipality attention – now; not later!
• TCC process
 TCC first stage: 2+ years – 2009-11 – TCC
organization and basic tax collection decisions
 TCC second stage: forever – oversight of ongoing
tax collection
TCC Advance Planning
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Taxing authorities should begin advance planning for
TCC – now:
 Form planning group Collect/summarize tax facts
 Governance/first meeting/chairperson
selection/other initial decisions
Taxing authorities should appoint TCC voting
delegates and alternates – now – Delegate need not
be elected official and need not be appointed official –
this must be done by 9/15/09 – must convey this
information to County Commissioners
Suggestion: Appoint same person as TCC delegate
who is delegate to CTCB board (they have working
knowledge of tax and are used to dealing with a large
group)
Every PSD must select one delegate to TCC but more
than one PSD can have same delegate (this will
reduce number of delegates on TCC and will increase
efficiency)
TCC initial meeting
 Must take place by November 15, 2009 – but can be before
 It is the responsibility of the county commissioners to organize
the time, place and location of the first meeting – must notify
PSDs by 9/15/09 of when first meeting will occur and must give
public notice 21 days before first meeting
 County commissioners run the first meeting until a TCC
chairperson is elected; this should be your first vote
 Once chairperson is elected; county commissioners role is
finished; chairperson now runs the meeting
 Weighted vote is default vote
 First vote should be to determine chairperson and this should
be discussed early (50% based on population; 50% based on
revenue – this will be distributed by DCED by 9/1/09)
TCC First Stage
TCC First Stage – Year #1 – 2009/2010
October/
November
2009
(November 15
deadline for first
meeting)
• TCC first meeting
 County Commissioner Chair or
designee convene meeting – no official
further County role after officer election
 Must elect Chairperson, Vice
Chairperson, Secretary, Open Records
Officer (and possibly other officers)
 Should appoint legal counsel
 Should advertise
 Adopt bylaws – if possible based on
advance planning –
TCC First Stage
After officer
election and
bylaw
adoption/
before tax
collector
appointment
• TCC takes the following steps:
 TCC management structure decisions
 Collection method
 Independent third party
 For Profit collectors
 Tax collection bureau
 Create a Perry County Tax Collection
Bureau
 Multi County Collection
 Independent third party
 Tax collection bureau
 TCC finance decisions
 TCC auditor
 TCC bank
 TCC budget – operating costs TCC
operating cost financing mechanism –
 TCC tax collection cost allocation plan –
TCC First Stage
June 1, 2010
Deadline to
appoint tax
appeal board
 Appoint new tax appeal board – made
up of 3 or more TCC delegates
 Appoint mediator
 Adopt mandatory and other policies
 Right-to-Know records policy – appoint
Open Records Officer (priority 2009)
 Investment policy
 Tax records policy
 Tax collector investment income
distribution policy
 Tax collector unidentified funds rules
 Regulations, policies, and procedures for
tax administration
TCC First Stage
Sept 15, 2010
Deadline to appoint
new Act 32 tax
collector
critical date
 If tax will be collected by
independent third party tax collector,
prepare tax collector RFP and
conduct RFP process
 Formal written Act 32 Tax Collection
Agreement provisions are very important
and should be included in RFP
 Decision on whether to accelerate
new tax collector appointment and
universal non-resident withholding
requirement to 01/01/11 instead of
01/01/12
Duties of TCC
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Maintain a record of all votes and actions taken by the TCC.
Appoint and oversee the Tax Officer.
Set the compensation of the Tax Officer.
Require, set, hold and review the tax officer’s bond.
Establish the method of financing for the TCC.
Adopt, amend, and repeal bylaws for the management of its affairs.
Adopt, amend, and repeal policies and procedures consistent with
regulations under the Act.
• This is the same thing that the CTCB board does now
Applicable Statutes
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Act 32
Ethics Act
State Adverse Interest Act
Sunshine Law
Right-to-Know Law
TCC Finance – Operating Costs
 No TCC expense payments until budget
adopted (unless paid by one or more taxing
authorities, or County – with expectation of
TCC reimbursement)
 TCC will have operating costs – separate from
EIT collection cost
 Estimates from DCED: $125-$150K
 Who pays for this: You do!
 Such operating costs to be shared by the SDs
and munis within the TCD in proportion to EIT
revenue (different from weighted voting –
population not considered)
TCC Second Stage
TCC Second Stage –
2012 and Future Years
January 1,
2012
• Act 32 county-wide collection begins
(unless accelerated)
• Act 32 income tax law changes
effective
• Second stage of TCC responsibilities
begins, involving oversight of countywide tax collection arrangements and
periodic decisionmaking on continuing
or changing arrangements
• TCC = oversight organization (or
bureau)
Perry County Act 32 Tax Planning
Committee – 8/5/09
TCC Planning Group Steps
• Who is the leader? How get started?
• Members of planning group?
SD officials or business administrators
Local municipal officials or managers
Identify other interested parties
• Sunshine Law/Right-to-Know Law?
TCC Planning Group Steps
• How proceed?
Organization meeting
Planning group composition
TCC Legal Overview and Timeline
Resources needed
Subsequent meetings
Authorize letter to taxing authorities
– Act 32 required steps
– Urge delegate appointment
TCC Planning Group Steps
County dialogue, including establishing time and place for
TCC first meeting
Develop proposed TCC meeting agendas
Set planning group meetings to address TCC issues
Prioritize TCC issues/assign responsibility
Develop proposed TCC bylaws
Develop proposed TCC budget
Legal counsel
Funding mechanism for costs incurred before TCC first
meeting
Develop proposed TCC Right-to-Know Law Request Policy
Conduct outreach programs – taxing authorities and
business community
TCC Bylaws
TCC Bylaws
• Bylaws = critical document – address ASAP
– CTCB has Act 32 bylaws ready to go and will provide
them free of charge
• Governing body – representatives of every school
district and municipality within TCC that levies EIT
• Mini United Nations – 36 Delegates
– 4 SDs/32 munis = 36 possible delegates
– PA Senate – 50 Senators
• Weighted voting – based 50% on EIT revenue and
50% on population
• Option to change statutory default rules
TCC Bylaws
• Major decisions first; then drafting and details
• Major bylaw decisions:
 Overarching – how to streamline governance?
 Delegate number: How many voting delegates
should there be? Should number of delegates be
reduced to streamline governance? Note: TCC first
meeting requires delegate appointed separately by
every TA (but multiple TAs may appoint same person).
 Vote weight: Should there be weighted voting based
on tax revenues and population? Alternatively, should
each delegate have just one vote? Note: TCC must
use weighted voting until bylaws adopted.
TCC Structure
 Management committee: Should TCC have a
management committee? If so, what duties should
be delegated to the management committee?
 Employees: Will TCC have Executive Director or
other employees?
 Vote required for action: What vote is required for
decisions? Simple majority of those present?
Majority of all delegates? Supermajority for certain
major decisions?
 Many other decisions
CTCB role in Perry County TCC
• We already collect for 100% of Perry County
• Historically, our rate has been between 0.5 and
0.6%
• If the TCC votes to retain CTCB, the bureau
could absorb the costs of the TCC
• We already have bylaws, solicitor, auditors,
director
• This can save the TCC unnecessary expenses
CTCB role in Perry County TCC
- Technology
• CTCB prints all of its forms in house
• CTCB offers online filing for taxpayers
• In 2010, CTCB will offer online filing for
employers
• New website – tax forms available online
• New mailing and emailing software to
reduce costs
• Experienced staff in place and ready to go
CTCB role in Perry County TCC
– Other services
• Act 32 only applies to Earned Income Tax
• CTCB can also collect Local Services Tax (LST),
real estate tax (both for school district and for
county), OAT, OPT, personal tax
• Can also collect bills (trash, sewer, utility, etc.)
• Can print forms for members at cost
• Can be a one stop shop for all taxes in Perry
County (similar to Lancaster Bureau)
CTCB Role in Perry County
• The longer it takes for TCC to decide
collector, the more expensive it is for you!
• If you elect CTCB to be the collector at
your first meeting, CTCB then absorbs all
the costs associated with CTCB because
TCC becomes the Board of Directors of
CTCB