Board weighs outsourcing tax collection as Berkheimer offers local office; debate continues over real estate, staffing and costs

Board members discussed turning over district tax-collection duties to a third party after hearing that Berkheimer Tax Administrators is offering a local, staffed office in Clinton County.

Board members said Keystone is withdrawing from tax-collector duties and requested an official letter confirming that status. Berkheimer’s offer of a staffed local presence prompted discussion about which taxes the vendor should handle and how closing the district tax office would affect district staffing and costs.

Several directors said it would make sense for a local, staffed Berkheimer office to collect multiple taxes — particularly the local service tax (LST) and business privilege tax (BPT) — so residents can meet in person for questions. The board also discussed whether Berkheimer should collect real estate taxes; administrators noted that real estate collections currently use a First National Bank lockbox and that the district does not now pay fees for that service. Some board members said paying a private firm to collect real estate tax would be unnecessary if the district is not currently incurring fees for that service.

Administrators said the district plans to retain Noelle (full name not specified in the work session) to continue necessary internal tax-related work even if the tax office closes. Board members expressed a desire to avoid job losses and to assess whether retaining Noelle while outsourcing collection would be cost-effective.

Several directors argued that operating a district tax office imposes costs — employee salaries and benefits, equipment, software, and maintenance — and that outsourcing to a tax professional would likely cost less than continuing to staff the tax office. Others argued that because the district is already paying for some administrative capacity (retaining Noelle) and using a lockbox for real estate with no direct fees, the savings of outsourcing real estate collections were unclear.

No formal action was taken at the work session. Board members requested additional information, asked administration to secure written confirmation that Keystone is withdrawing as tax collector, and discussed recommending that Berkheimer collect the local service tax and business privilege tax if it maintains a staffed local office.