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To: John McCarthy who wrote (80467)	6/22/2008 11:17:46 PM
From: John McCarthy	Read Replies (1) \| Respond to of 116555

Proposal looks to slash local tax collectors' jobs to streamline process By RICHARD FELLINGER Evening Sun Harrisburg Bureau Article Launched: 06/21/2008 07:00:59 AM EDT Lawmakers are eyeing a bill to drastically change the way wage taxes are collected by slashing the number of tax collectors and creating countywide collection districts. Supporters of the bill say it is needed to change an inefficient and cumbersome system in which 560 tax collectors across the state handle local earned-income taxes. Sen. Jane Earll, of Erie, sponsored the bill, which cleared the Finance Committee on Wednesday by a vote of 25-1 and now heads to the House. Sen. Terry Punt, of Waynesboro, is a co-sponsor. Rep. Steven Nickol, of Hanover, ranking Republican on the House Finance Committee, voted for it. Finance Committee Chairman David Levdansky, of Allegheny County, said the existing system made sense when people typically worked where they lived, but has become confusing for businesses and taxpayers in an era when many people commute. Levdansky said municipalities and school districts lose an estimated $237 million per year in uncollected revenue because of the patchwork system. "There's a lot of leakage there, so at a time when budgets are very tight, we ought to be sure they collect all the revenue they have coming to them," Levdansky said. Backers of the bill include business groups such as the Pennsylvania Chamber of Business and Industry and local government advocates such as the Pennsylvania State Association of Township Supervisors. Business advocates say the current system is especially hard on companies with a regional or statewide presence. Sheetz has convenience stores in 52 Pennsylvania counties and must work with 270 tax collectors, according to a news release from the statewide chamber. "We have to do various runs of the payroll system and work with so many tax collectors. This is a problem for the employer and for the state, the latter because it's losing tax revenue by the millions annually," said Michael Cortez, Sheetz vice president, in the chamber release. The state association for wage-tax collectors opposes the countywide system, saying it would strip local control of tax collection and cost jobs. Mary Abbott, president of the Pennsylvania Earned Income Tax Officers, Administrators and Collectors Association, said it would be better to switch to a system with all collection at the school district level. Because many districts have already consolidated their collections, she said district-level collections still would mean a drastic cut in the number of tax collectors, to about 150. "Just by changing to school district consolidation, you would still accomplish everything the business community, which is one of the biggest proponents of this (change), wants to do," Abbott said. Earll's bill would create 69 tax-collection districts - one for most counties and four for Allegheny County, where Pittsburgh is located. The consolidation would apply to wage taxes levied after Dec. 31, 2011. In each district, an appointed tax collector would be chosen from a panel of delegates from each municipality and school district. County officials would have no role in the process. The plan does not affect the collection of property taxes. Elected property-tax collectors would retain their authority. The bill should see a floor vote in the House next week, Levdansky said. It would then have to go back to the Senate for ratification. eveningsun.com