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Welcome to FYI

• Our Intent and Purpose – Strategic Plan Outreach and Mentorship Effort for New and Newer PASBO Members in all aspects of School Business Management – Use PASBO Experts to Help New Entrants 2

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Today’s Agenda

I.

What's Due

Calendar of State and Federal Reports

II.

III.

PASBO Tools You Can Use Real Estate Tax Collection IV.

Your Questions Answered

An Open Forum for Your Questions About Topics Covered and Uncovered!

1-Apr New Hire Report Monthly Report of New Hires 30-Apr 941 Quarterly Employer's Quartery Federal Tax Return HR Dept. of Labor & Industry 1-Apr NSL Report on PEARS 1-Apr RCT-900 Upload NPAS 10-Apr Reports and Send On-line Annual Public Utility Realty Tax Act (PURTA) Monthly Report of Wages & Retirement Contributions 10-Apr Bus Evacuation PDE 4101 Semi Annual School Bus Evacuation Drill 15-Apr AP-1, AP-2 25-Apr PDE-2576 30-Apr PDE-339 Monthly Reimbursement for Lunches Served each Month Food Service CN PEARS Finance Finance PA Dept. of Revenue PSERS/NPAS Transportation PDE Annual Annual Unclaimed Property Reporting (HRS Pro) Corrections (if necessary) to PDE 2576 Prelim. Summary of pupil Finance transportation PA Treasury Transportation PDE Quarterly Report for Soc. Sec. and Medicare contributions Finance DSD&A Finance IRS

1 May PDE-2054 1 May 1 May NSL Report on PEARS Financial Interest Statements Annual Annual General fund annual budget (intermediate units) 1 May New Hire Report Monthly Report of New Hires Monthly Reimbursement for Lunches Served each Month Board Members, Tax Collectors, Administrators Finance PDE HR Food Service Dept. of Labor & Industry CN PEARS Board Secretary PA Ethics Commission 10 May Upload NPAS Reports and Send On-line Monthly Report of Wages & Retirement Contributions Finance PSERS/NPAS 31 May 31 Certification of Use of PDE-2028 Annual May CLGS-501 Annual Certification of Use of PDE-2028 must be signed/submitted even if preliminary budget adopted Finance Certified copy of new LTEA tax enactments, repeals, changes, or new tax collector Finance PDE DCED

Sources of Filing and Reporting Info

•  PIMS Data Collection Calendar http://www.portal.state.pa.us/portal/server.pt/community/pims pennsylvania_information_management_system/8959 •  Comptroller Forms http://www.portal.state.pa.us/portal/server.pt/community/forms _and_procedures/13472 •  Food Service Calendar http://www.portal.state.pa.us/portal/server.pt/community/natio nal_school_lunch/7487/activity_calendar/964588 6

There’s a doc for that…

at the

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enter www.pasboerc.org

Delivering Best Practices and Good Ideas

Budget Blog

• • • Ning site with email push notification on developments with the State Budget and other useful information Invite only Send email to Jeff Ammerman to request to be added [email protected]

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Real Estate Tax Collection

• Tax collectors are elected in municipal elections to serve four-year terms. These collectors are empowered to collect taxes authorized by the Public School Code. This includes school real estate tax and a single $5.00 per capita tax. 9

Real Estate Tax Collection

• Tax collector qualifications for most municipalities (like school director qualifications) are minimal - 21 years of age and a resident of the electing jurisdiction for one year. Tax collectors may not hold other elected offices.

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Real Estate Tax Collection

• • Tax collector terms for most municipalities run for four years effective the first Monday in January following election (although for school districts, the following July 1 is the relevant date).

Tax collectors are the only elected officials whose duties continue after their terms officially expire, continuing “in office” with powers to collect taxes and receive compensation until their accounts are settled.

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Real Estate Tax Collection

• • • Tax collectors must be bonded to collect taxes. The bond is the promise of a bonding (insurance) company to reimburse the school district for tax collector losses. Counties are authorized to bid bonds jointly and pro-rate the charges back to the participating municipalities, including school districts.

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Tax Collector Compensation

• • Without action by the taxing jurisdiction, compensation continues from term to term. If the taxing jurisdiction wishes to change tax collector compensation, it must do so prior to February 15 in the year of election. 13

Tax Collector Compensation

• • The February 15 deadline for alteration also applies to office and expense allowances and fringe benefits. Compensation cannot be changed during the term of office A change in expense reimbursement policy is considered a change in compensation. 14

Tax Collector Compensation

• Next opportunity for changing tax collector compensation has a deadline of February 15, 2017 for tax collectors who will begin January 2018 15

Tax Collector Compenstation

• • • • There are three basic methods of tax collector compensation: Salary – A fixed amount is established for a period of time and paid periodically regardless of collections or value of duplicate Fee per bill – A fixed amount is paid for each tax bill collected Commission – A percentage of amounts collected (but not to exceed 5%) 16

Tax Collector Compensation

• • • Authority to establish collector compensation is not absolute. Courts can overturn board established rates if deemed established under an abuse of authority. This becomes a particular issue when school districts reduce tax collector compensation.

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Tax Collector Compensation

• • • School districts may not provide health insurance to tax collectors. Amounts paid to tax collectors are specifically designated as being subject to social security tax with employee withholding and employer share as if the collector were an employee of the school district. Tax collectors not generally eligible to participate in PSERS 18

Tax Collector Compensation

• • Tax collectors cannot deduct their commissions from the amount they collect prior to turning them over to the school district. They must turn the taxes over in full and then be paid. Likewise, the tax collector may not deduct expenses from the amount of collections.

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Appointment of a Different Collector

• There is no authority in law for a school district to unilaterally replace the elected collector with respect to School Code taxes (real estate and $5 per capita) 20

Appointment of a Different Collector

• • Many school districts in Pennsylvania do collect their own taxes in lieu of an elected collector, but the mechanism to do so is complex and should be affected only in consultation with the school solicitor. Generally only an option if the elected collector resigns 21

Tax Collection Process

• Bills must be mailed by tax collectors on July 1 if they receive their duplicates and bills prior to June 16. Otherwise, bills must be mailed within 15 days after receipt 22

Tax Bill Required Elements

• • • The date of the notice - the date of the notice should be the date the notice is mailed, since this is the date from which discount, face and penalty periods are calculated Rate of taxation in millage Valuation and identification of property 23

Tax Bill Required Elements

• • • • Total amount billed for the current year Statement that the taxes are due and payable A request for payment of the taxes Statement as to when and where the taxes can be paid 24

Tax Bill Required Elements

• • • • • Dates for discount, face and penalty periods Indication of original amount of tax liability Indication of amount of homestead exclusion Indication of net amount of tax due Dates for Installment Payments 25

Discount/Penalty

• • • Discount – 2% of face amount if paid within two months of the mailing date.

Face – Payment at face if paid within two months following the discount period.

Penalty – No more than 10% of face amount if paid after four months of the mailing date.

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Installment Payments

• • Qualifying taxpayers must be given the opportunity to pay in at least three installments, but payment opportunity can be no greater than monthly. As a practical matter, the number of allowable installments is limited by the county “turnover” date. For example, if the host county establishes a delinquent tax turnover date of December 31, the school district’s installment collection program must conclude by December 31.

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Tax Collector Bank Account

• • • All tax funds collected by the tax collector should be deposited in a bank account. The tax collector only serves as trustee of the funds; any interest earned on the tax monies belongs to the taxing district, not to the tax collector.

In some jurisdictions, tax collectors deposit funds directly into the accounts of the taxing districts. This practice is quite acceptable.

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Reporting Requirements

• • The tax collector is required to make periodic reports to the taxing district.

These reports are due by the tenth day of each month for the previous month’s activity, but may be required more frequently by the taxing district by ordinance or resolution.

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Reporting Requirements

• • • The monthly statement must list all taxes collected for the taxing district for the reporting period. Must list the names of taxpayers and amount collected from each, including discounts and penalties Must carry a total of all taxes collected with discounts and penalties for the reporting period. 30

Reporting Requirements

• If the monthly reports are not filed on time, the taxing district may impose late filing fees, not to exceed $20 for each business day for the first 6 days the reports are over due. After 6 days, the late fee cannot exceed $10 for each additional business day up to a maximum fee of $250 per overdue report 31

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Year End Settlement

The tax collector must make a final settlement of the tax duplicate by January 15 for the prior calendar year This involves settlement of all taxes on the duplicate, discharge of bond liability, audit and return of unpaid real estate taxes to the county tax claim bureau. Settlement for the current year must be made before the tax collector may receive a duplicate for the following year.

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Tax Collector Manual

• • • • DCED free PDF Publication More in-depth information than we covered here Read it!!!

http://www.newpa.com/webfm_send/1 521 33

• • May 8, 9:00 am Facilities and Maintenance

Next Session

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Time for Questions!

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Thank you for your participation!

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Next FYI is May 8 at 9 am.

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