Meeting Minutes May 31, 2011

Centre County Tax Collection Committee Meeting

Meeting Minutes

Thursday May 31, 2011

       I.            Call to Order

The May 31, 2011 meeting of the Centre County Tax Collection Committee (CCTCC) was called to order at 7:05 pm with Randy Brown, Chair, presiding.  The Meeting was held in the Bellefonte High School Library.

      II.            Roll Call

Ms. Wyatt conducted the roll call.  Ms. Wyatt stated a quorum was present.

In attendance were representatives from the following political subdivisions (PSD):  Bellefonte Borough, Benner Township, Boggs Township, Centre Hall Borough, College Township, Ferguson Township, Gregg Township, Harris Township, Huston Township, Marion Township, Millheim Borough, Milesburg Borough, Patton Township, Penns Valley Area School District, Potter Township, Spring Township, State College Borough, State College Area School District, Walker Township, and Worth Township.

Non Delegate Attendees:  from State College Borough: Michael Groff, Jason Meeker, and Linda Welker; Ferguson Township: Eric Endersen; Gregg Township:  Pat Leary Patton Township:  Jackie Benshoof.

Absent:  Burnside Township, Haines Township, Halfmoon Township, Howard Borough, Howard Township, Miles Township, Penn Township, Port Matilda Borough, Snow Shoe Borough, Snow Shoe Township, Union Borough, and Union Township.

    III.            Approval of Minutes

Mr. Brown asked for approval of the January 31, 2011 minutes.  Mr. Wall of Penns Valley Area School District made a motion to approve the minutes.  Mr. Stewart of Bellefonte seconded the motion.  With no changes to the minutes, the motion passed.

    IV.            Report from Committee Chairperson

Mr. Brown summarized the meeting agenda.  Items prepared for TCC business:

·         Agenda planning

·         State College Borough Transition:  Linda Welker of the State College Borough will speak about the early implementation process and the transition for the remaining members for January 1, 2012.

·         TCC Responsibilities will be discussed later in the meeting.

      V.            Financial Report

Mr. Brown referenced a copy of the profit and Loss Statement for year ended December 31, 2010.  A motion to accept the financial statements was made by Mr. Long of College Township and seconded by Mr. McMath of Spring Township.  The motion passed unanimously.

    VI.            CCTCC Financial Records 2010

Mr. Brown provided a copy of the review of the TCC’s financial records performed by ParenteBeard  for the year ended December 31, 2010.  A motion to accept the financial report was made by Mr. Stewart and seconded by Mr. Strebel of Millheim Borough.  The motion passed unanimously.

Act 32 Webinar-PASBO

The Pennsylvania Association for School Business Officers is offering a webinar regarding lessons learned from early adopters of Act 32.  The State College Borough has offered to host the webinar.  The cost is $100.  Mr. Brown asked for a motion to authorize registration for the TCC to participate in the member.  He stated that TCC members were invited to attend the webinar.  He noted that those individuals requiring CPE hours would be charged a participated fee.  Mr. Long made the motion to authorize the TCC to register and pay for the webinar and Ms. Crater of Centre Hall Borough seconded the motion.  A roll vote was conducted which allowed the motion to pass unanimously.

VIII.            Ne w Earned Income Tax Enactments to Conform to Act 32

Mr. Brown provided the following information:

Kegel, Lelin, Almy and Grimm, LLP in consultation with  PASBO’s Act 32 Task Force, the creator of the Tax Collection Agreement purchased by our TCC, has created sample forms for the tax enactment process under Act 32. Forms such as an EIT tax resolution/ordinance, EIT tax advertisement, and DCED notice form. The cost of the packet of forms is currently $750, but may be reduced depending on the number of TCC’s who purchase. These forms may be modified for the use of each of the local municipalities and school districts, saving time and resources.

Mr. Leary stated that the forms such as sample ordinances were on the PSATs and Borough Associations websites for free and he objected to spending money for these forms.  Mr. McMath suggested we look at the website before approving this purchase.  Ms Wyatt, as secretary was directed to do so.

Further discussion about the uniformity of ordinances may reduce collection costs.  Ms. Miller suggested that a subcommittee be formed to look at all of the ordinances/resolutions.  Mr. Stewart, Mr. McMath and Ms. Welker volunteered to review existing documents.  Members were advised to email a copy of their ordinance/resolution to Mr. Stewart at Bellefonte Borough for review and comparison to PSATs and the Borough Associations free ordinance/resolutions.

    IX.            Discussion Items

A.      Review DCED Timetable for Act 32 Implementation

Mr. Brown reviewed the Act 32 Countywide Tax Collection Timetable that was distributed with the agenda and stated that this TCC was in sufficient shape and meeting deadlines.

He said that one area that we needed to focus efforts on was the Appeals Board.  Mr. Brown asked Mr. Robert Long if he would call together the members of the appeal board to develop and document the appeals process.   It is anticipated that this document will be provided to the TCC for approval at the next meeting.

B.      Report from State College Borough regarding Early Implementation and the Transition Process

Linda Welker of State College Borough addressed the membership.  She said that the early implementers had provided good lessons and there is a learning curve in the process.  Employees from SCB have worked with employers in all the school districts to educate employers on how and where to file employer reports.  SCB has had seminars for employers throughout the county.  She noted that employers have been surprised by the changes necessary to their payroll programs to become Act 32 compliant.  Ms. Welker indicated that she has also met with major payroll processors and local prepares to start the education process.

Ms. Welker informed the membership that she will work with local collectors to have lists of employers and taxpayers provided to SCB when local collectors have finished processing 2010 returns.  These lists will provide a basis for the database of EIT payers.

An open house at SCB has been scheduled for July 20th for municipalities to see SCB processing.  Ms. Welker provided and explained a handout of the transition plan.

At this point SCB has an list of all the employers in the county and will have local collectors verify the list for correctness.

Mr. Kunkle, Ferguson Township, asked Ms. Welker about whether Penn State University had decided where they would file for all their employees state wide.  Ms. Welker indicated that she believes it is PSU’s intent to file with the Centre Tax Agency.  Mr. Kunkle wondered what the cost effect would be on the CCTCC.  Ms. Welker said at this she was not sure but would have a better idea when the beta test site was available which should be soon.

Mr. Kunkle also asked Ms. Welker how nonresident tax withholdings would be distributed by CTA.   Specifically, the question related to whether the work site would be attributed the withholdings or if the withholdings would be distributed elsewhere?   Linda confirmed that the practice would be to distribute nonresident withholdings to the worksite.  Ms. Welker continued the discussion with an example of when this practice may not apply. The example cited an employer providing a quarterly tax return with withholdings, for an employee living on Vairo Boulevard in Patton Township.   If the address appearing on the employer return specifies a local address and that address falls in a municipality/school district that levies an EIT, the tax office would rely on the employer filing, assuming no other information was available at that time.  These withholdings would flow through as a transfer during the normal processing cycle.   Following the close of the tax year, the employee who was recorded as being as a resident of Vairo Boulevard may in fact file his/her annual tax return showing that the Vairo Boulevard was only a temporary address and that a legal tax home was somewhere else.  This information would only be known to the tax office after the close of the tax year as well as after the transfers of withholdings that take place monthly.  The tax office will attempt to transfer nonresident withholdings correctly to the work site; however, they can only distribute money based on the most accurate information available to them at the time the monthly remittance is completed.

Mr. Wall gave Kudos to Ms. Welker and her staff at State College Borough regarding attendance at the employers’ workshops.  He found the one he attended to be very useful.

C.      Appointment of TCC Representatives and Notification to the TCC for the 2011 Calendar Year and Status of Payments of Shares by Municipalities.

Mr. Brown wanted to remind TCC member organizations that the TCC Secretary, Kim Wyatt, should be notified of any changes in TCC representatives. Furthermore, there are still several municipalities who have not paid their shares for 2011. Please forward payment to Kim Wyatt as well.

D.      Statement of Financial Interest Forms

This shall serve as a reminder that a completed form is required for each TCC representatives for 2010. Please send those as soon as possible.

  1. Other Business - Discussion Items

A reminder that TCC Representatives and Notificaiton of appointment for the 2011 calendar year should be completed in December/January and sent to Kim Wyatt, Secretary.

VIII.         Future Meeting Dates

The next meeting for the TCC is scheduled for Thursday September 29, 2011 at 7 pm at the Bellefonte Area High School Library.

IX.            Adjournment

A motion to adjourn was made by Mr. Wall and seconded by Ms. Miller of the Gregg Township.  The motion passed and the meeting adjourned at 7:55 pm.