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KC board considers tax collection options

MILL HALL — The Keystone Central School District is considering what entity will collect its Earned Income and other taxes.

In December, the board voted for its tax office to no longer provide Earned Income Tax collection services for the Clinton Tax Collection Committee. The TCC is made up of multiple area municipalities including the City of Lock Haven, among others.

The move did not include Business Privilege Tax (BPT), Local Service Tax (LST) and Real Estate Tax, which the district would continue to collect.

At its work session last week, Superintendent Dr. Francis Redmon said the administration and the tax office were looking for a direction in how the board wanted them to proceed in terms of tax collection.

“We have informed the TCC that we would no longer be collecting EIT for them. They have since elected a third party collector and some other municipalities have gone along with that as well for LST and BPT,” he said. “We’re seeing a lot of change happening from theTCC about how tax collections are happening in Clinton County. We have to worry about how our taxes are going to be collected.”

Redmon asked the board to decide how it would like to proceed in regards to tax collection because it could affect costs in the future.

“It has some implications for us in terms of staffing and costs, potentially software and other expenses that could be coming down the line depending on which direction the board gives us,” he said.

Redmon explained EIT is already handled by the TCC, but the board needed to decide how LST and BPT would be collected. The district would continue to collect real estate taxes in-house, he said.

He said the administration recommended the board find a third party for LST and BPT.

Board member Tracy Smith was the first to speak in favor of a third party.

“I do think we should look at a third party. Third partying that out would save us a lot in the long run, especially with the updates that are needed,” she said.

Board President Roger Elling agreed, noting it could be bid out. Though Redmon noted the district isn’t under a legal obligation to put the project out for public bid.

Board member Chris Scaff requested that, if the board chooses this route, the companies come and present information to the board.

“We should absolutely have them come in and do a presentation. Tell us what they can and can’t do,” he said. “As a sitting TCC board member that was vital when we did it.”

Elling and Board member Elisabeth Lynch agreed that presentations could be beneficial.

“Requests for proposal… it’s easy peasy, they can break it all down by category,” she said, further suggesting the presentations be as condensed as they can, and information be placed on BoardDocs in advance.

Redmon told the board the district has preliminarily looked at “three of the biggest tax collectors in the state to give us their bid of services” and that the administration could reach out and see if they can provide a presentation.

Business Manager Joni McIntyre noted a few municipalities, including Lock Haven, already moved to a third party for their services.

Redmon said, if the board wanted, the administration could set up a special meeting prior to its regular work session in September to review potential candidates.

Board Vice President Butch Knauff suggested the board open these meetings up to other municipalities in the county who are looking for collection services.

Redmon said the district is hoping to have a service in place and transition completed by Jan. 1, 2026.

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