If the print dialog box does not automatically appear, open the file menu and choose Print.
Article published August 4, 2010
Collector for countywide earned income tax chosen
BUTLER TWP — The Butler County Tax Collection Committee chose Berkheimer Tax Administrator as the countywide earned income tax collector for the county's 71 taxing jurisdictions that include county boroughs, townships and school districts. The committee officially approved the county's new tax officer at its meeting held last week in the Butler Intermediate High School library. Berkheimer will begin collecting 1 percent wage tax on Jan. 1, 2012, under a five-year agreement that can be renewed at the end of the term. The company will earn 1.5 percent commission on its countywide tax collections. Berkheimer also is required to relocate its existing office in Zelienople into a still-to-be determined central Butler County location. Berkheimer's collection only applies to earned income tax. Other Act 511 "Local Enabling Taxes" such as local services, business privilege and per capita taxes will continue to be collected as is currently the practice in each municipality. Cathy Rodgers, tax development committee chairwoman and Butler School District business manager, said the large undertaking was a successful process. She pointed out that other counties in the state have had problems just beginning the process as conflicts between neighboring municipalities and distrust of the process have been documented. In other cases, municipalities have refused to participate. All of the group's meeting minutes and major documents are given to each taxing body representative and are made available to the general public via the committee's website at www.bctcc.org. John D'Amore, tax development committee secretary and current business manager at Moniteau School District, said he believes last week's outcome should benefit all the county's communities. The committee had sent out requests for proposals and received three replies from Berkheimer, Central Tax Bureau of Pennsylvania and Keystone Municipal Collections Group. Berkheimer is no stranger to Butler County as the firm currently works as the tax collector for the Seneca Valley School District and the municipalities that are served by the school district. The switch to a countywide earned income tax collection was mandated by Act 32. In 2008, the Legislature mandated each county, except for Philadelphia and Allegheny counties, appoint a single tax collector for earned income tax collections. In addition to the collection changes, all businesses will have to deduct earned income tax for all of their workers and forward the proceeds to the new county collector. The collector will then distribute tax revenues to communities and school districts. Under the current system set to expire by 2012, employers withhold wage tax only from workers who live in the community where the business is located. Workers who live outside the area of their business and self-employed workers pay wage taxes to their home communities and school districts on their own.
