PHOTO PROVIDED Berkheimer Business Services Client Development Executive Rick Stover speaks to the Keystone Central School District Board of Directors regarding the firm’s proposal to collect Business Privilege and Local Service taxes on behalf of the district.

MILL HALL — The Keystone Central School District has hired Berkheimer Business Services to collect its Local Service and Business Privilege taxes beginning in 2026.

During its voting session on Thursday night, the board of directors received further information about Berkheimer’s proposal — which was presented at a public meeting last week — and voted to collect Real Estate Tax in-house by a district employee.

The move solidifies the district’s intent to close the Keystone Central Tax Office at the end of 2025.

While LST and BPT will be collected by Berkheimer and Real Estate by the district, the Clinton County Tax Collection Committee (TCC) has contracted with Berkheimer to collect the Earned Income Tax for its membership.

During the public hearing, held prior to the board’s work session, Rick Stover, client development executive for Berkheimer, presented a brief presentation on the company’s proposal.

Berkheimer quoted the board the following:

— It would receive 1.75 percent commission for both current tax collections and delinquent collections for the Local Services Tax (LST).

— It would receive 2.25 commission for Business Privilege Tax (BPT).

Postage is not included in any of these proposals. Berkheimer looked to sign a three year contract with the district — from Jan. 1, 2026 through Dec. 31, 2028.

The board voted unanimously to accept Berkheimer’s proposal on Thursday night.

Prior to the vote, board members asked clarifying questions about a few matters to Stover and the district’s Business Manager Joni MacIntyre.

Board Member Chris Scaff asked if Berkheimer — which proposed the collection of three taxes — would be okay with only being contracted to collect BPT and LST.

Stover, who attended Thursday’s meeting, said it would be fine with that.

“You are the client and it’s your decision as to what you want us to do. If your vote and your decision is to keep the Real Estate within the school district, we have no objection to that,” he said. “We would then collect LST and BPT on your behalf.”

Berkheimer offered some insight into what municipalities the firm is working with as well.

He said Mill Hall, Flemington and Renovo boroughs and Dunnstable Township have all submitted signed contracts and passed resolutions to use its services for the collection of taxes.

The firm also submitted contracts to the City of Lock Haven, Chapman, Woodward and Porter townships for services.

“We’re kind of marching through the municipalities as well,” he said.

In terms of its Real Estate Tax collection, the board approved a recommendation from the board to retain an employee to handle that collection and serve as a third party between the district and Berkheimer.

According to the administration’s proposal, they will have oversight of Berkheimer’s collection of EIT, BPT and LST; have experienced knowledge of the district’s taxpayers and billing process; will continue to monitor tax revenues; ensure Act 80 compliance by verifying taxpayer addresses and PSD codes.

Scaff asked how current lawsuits related to taxation will be handled.

“Since it’s ongoing litigation I’m sure it will stay the way it is. We wouldn’t ask Berkheimer to take on what we’re in the middle of,” Superintendent Dr. Francis Redmon said.

MacIntyre said ongoing litigation is another reason why it would be important to keep an employee from the tax office on the district’s staff.

“We have an expert in the position that already does it. She’s already familiar with BPT, LST, EIT and Real Estate. You’ve got that experience and knowledge sitting here at the district being able to also then be the point person for the third party,” she said. “When you talk about those high dollar lawsuits, that’s the perfect person for Berkheimer to interact with.”

Scaff also asked if an audit would still be performed on the Real Estate Tax.

Redmon told him it would be audited as part of the General Fund audit conducted annually by Baker Tilly.

Board Member Elisabeth Lynch asked if the removal of the Real Estate Tax would impede its ability to staff a brick and mortar location in the county.

Stover said it would not.

“That was one of the conditions in our proposal that was in the contract with the TCC when we originally met with them,” he said.