Dauphin County Tax Collection Committee

New Government Entity – TCC • Dauphin County TCC is new government

entity• 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

Dauphin County TCC

• Represents 52 members• 41 Municipalities, 11 School Districts• 2 Counties

– All of Dauphin County (except Reed Township)– 2 Schuylkill County municipalities (Porter Township,

Tower City)

• Presently represented by 5 Tax collectors (Berkheimer, Capital Tax Collection Bureau, Derry Township Tax Collection, Lancaster Tax Collection Bureau, Upper Dauphin Area Tax Collection Bureau)

Applicable Statutes

• Act 32

• Ethics Act

• State Adverse Interest Act

• Sunshine Law

• Right-to-Know Law

TCC Advance Planning

NOW• 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

• Understanding basic TCC steps important for two reasons: Know what needs to be done/start planning Think about who will ensure things are done

– does TCC need an employee?

TCC First StageTCC First Stage – Year #1 – 2009/2010October/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 ad opt bylaws – if possible based on

advance planning –

TCC First StageAfter 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 Dauphin County Tax Collection Bureau

Multi County Collection Independent third party Tax collection bureau

TCC finance decisionsTCC auditorTCC bankTCC budget – operating costs TCC

operating cost financing mechanism – TCC tax collection cost allocation plan –

TCC First StageAfter officer election and bylaw adoption/ before tax collector appointment

Decision on single-county or multi-county TCC

Study income tax collection options/decision on tax bureau vs. independent third party collector

TCC insurance decisionsDecision on TCC jurisdiction over

LST and other taxes

TCC First StageJune 1, 2010Deadline to appoint tax appeal board

Appoint new tax appeal board Adopt mandatory and other

policiesRight-to-Know records policy –

appoint Open Records Officer (priority 2009)

Investment policyTax records policyTax collector investment income

distribution policyTax collector unidentified funds rulesRegulations, policies, and

procedures for tax administration

TCC Finance – Operating CostsNo TCC expense payments until budget

adopted (unless paid by one or more taxing authorities, IU, or County – with expectation of TCC reimbursement)

TCC will have operating costs – separate from EIT collection cost

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 First StageSept 15, 2010Deadline to appoint new Act 32 tax collectorcritical 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

TCC First StageTCC First Stage – Year #2 – 2010/2011May/June 2011

July 1, 2011

Nov/Dec 2011

• School districts adopt new EIT or PIT resolutions effective 01/01/12

• TCC deadline to adopt and begin implementing transition plan for transferring responsibilities to new Act 32 tax collector and implementing Act 32 income tax law changes

• Municipalities adopt new EIT or PIT ordinances effective 01/01/12 (might want to accelerate adoption to earlier date)

TCC Second StageTCC Second Stage – 2012 and Future YearsJanuary 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 county-wide tax collection arrangements and periodic decisionmaking on continuing or changing arrangements

• TCC = oversight organization (or bureau)

Dauphin County Act 32 Tax Planning Committee

TCC Planning Group Steps• What will planning group do?

Series of meetingsCollect/summarize tax facts (from DCED

website and taxing authorities)Address/develop recommendations on major

TCC issuesEducation/communication affected parties

• What legal authority?• Why start now?• What if TCC rejects recommendations?

TCC Planning Group Steps

• Who is the leader? How get started?

• Members of planning group?SD officials or business administratorsLocal municipal officials or managersIdentify other interested parties

• Sunshine Law/Right-to-Know Law?

TCC Planning Group Steps• How proceed?

Organization meetingPlanning group compositionTCC Legal Overview and Timeline Resources needed

Subsequent meetingsAuthorize letter to taxing authorities

– Act 32 required steps– Urge delegate appointment

TCC Planning Group StepsCounty dialogue, including establishing time and place for

TCC first meetingDevelop proposed TCC meeting agendas Set planning group meetings to address TCC issuesPrioritize TCC issues/assign responsibility Develop proposed TCC bylaws Develop proposed TCC budgetLegal counsel Funding mechanism for costs incurred before TCC first

meetingDevelop proposed TCC Right-to-Know Law Request PolicyConduct outreach programs – taxing authorities and

business community

TCC Bylaws

TCC Bylaws• Bylaws = critical document – address ASAP

– PASBO Act 32 TCC Model Bylaws Available – DCED model bylaws

• Governing body – representatives of every school district and municipality within TCC that levies EIT

• Mini United Nations – 52 Delegates– 11 SDs/41 munis = 52 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 Bylaws

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