GOVERNOR’S CENTER FOR LOCAL GOVERNMENT SERVICES RESPONSIBILITIES
Submitted by Michael Foreman, Local Government Policy Specialist
Department of Community & Economic Development
Governor's Center for Local Government Services
Act 32 of 2008 amended Act 511 of 1965, the Local Tax Enabling Act which authorized municipalities and school districts to levy a local earned income tax. Act 32 of 2008 establishes the collection and administration of the local earned income tax on a countywide level by establishing 69 tax collection districts of which Allegheny County is divided into four. The Act also sets forth strengthened administrative, accountability and enforcement provisions.
Following enactment of Act 32 in July 2008 the Center formed an internal Implementation Committee made up of Center management and staff and assisted by the DCED Legal Office to strategize transition and implementation issues and to fulfill the Department’s responsibilities under the Act. The Center is directly engaged in ongoing outreach efforts to communicate information to government officials and the public on transition and implementation provisions. A continuously updated list of frequently asked questions, timetable of key implementation deadlines and other general information on Act 32 is now being maintained on the DCED website (www.newpa.com).
Informational sessions are being conducted by Center staff with elected and appointed officials of political subdivisions throughout the Commonwealth. A comprehensive training program is planned for this spring at locations around the Commonwealth. Responses to inquiries are being provided by Center staff through our toll free number (1-888-223-6837).
The Center has established an Earned Income Tax Collection System Advisory Committee made up of stakeholder organizations (i.e., legislative caucus, municipal and school associations, non-profit organizations representing business community) who were involved in the process leading to the enactment of the new law. The Advisory Committee will continue to provide input and feedback to the Center on its various responsibilities concerning phases of transition and implementation efforts over the next few years.
DCED has certain responsibilities to meet under Act 32 as part of the ongoing transition and implementation process. Several are being undertaken simultaneously.
The Governor’s Center published a list of each of the 69 tax collection districts on January 28, 2009 in the Pennsylvania Bulletin. This list and an accompanying map are currently available on the DCED website.
As called for in the Act, the Center is undertaking a study of existing earned income tax collection best practices with particular attention to current tax bureaus for the purpose of identifying, collecting and comparing those practices, methods, structures, bylaws, budgets, policies/procedures, regulations, software/information technology, forms, codes, agreements, request for proposals, governance alternatives to promote the greatest likelihood of effectiveness, cost efficiency, loss prevention and intergovernmental cooperation.
No later than December 31, 2009, the Center is required to provide each tax collection district with a best practices report of the findings and recommendations including sample bylaws, procedures, regulations, forms, agreements, requests for proposals for the selection of tax officers, request for proposals for the procurement of software systems and other appropriate samples.
By September 15, 2009 each municipality and school district that currently imposes an earned income tax is to appoint a representative to serve on the tax collection committee. The Committee is to be convened by the Chair of the County Commissioners or County Executive depending on the form of government. The Center will develop a sample template for the first meeting of the tax collection district for county officials to use to facilitate the selection process of the chair, vice-chair and secretary of the tax collection committee which is to occur no later than November 15, 2009.
The Center is responsible for the development of an audit format for the annual audit required each year by a CPA conducted on behalf of the tax collection committee of the tax officer. The audit report is required to include specific elements and is to be filed not only with the tax collection committee but also all of the political subdivisions of the tax collection district by September 1 of each year.
The Center is responsible for the development of mandatory training and education for tax officers on an annual basis. The Center is required to adopt regulations, guidelines and procedures to establish the qualifications and requirements a tax officer must meet prior to appointment and must meet for continuing appointment. A tax collection committee may establish additional qualifications and requirements a tax officer must meet prior to being appointed and must meet for continuing appointment.
The Center is responsible for prescribing political subdivision and tax collection district codes for use by employers and tax officers.
Tax collection committees will have the responsibility of sending notice of the first meeting to the Center by September 15, 2009; notifying the Center of appointment of the tax officer within 10 days of September 15, 2010; and notifying the Center of whether the new tax officer will collect 2011 taxes by December 1, 2010.
While there is no specific funding program enacted through Act 32, DCED has agreed to prioritize funding under its Shared Municipal Services Program to assist with start-up costs. GCLGS will continue to provide technical assistance to local officials and the tax collection committees and will be fully engaged throughout the entire transition process.
Contact the Center at 1-888-223-6837 for technical assistance. Please check our website www.newpa.com periodically for additional resources and updated information.
Michael S. Foreman
Local Government Policy Specialist
Department of Community & Economic Development
Governor's Center for Local Government Services
1403A State Office Building
300 Liberty Avenue
Pittsburgh, PA 15222-1210
Phone: (412) 565-5199
Fax: (412) 565-7983
www.newPA.com
