DCED Encourages Local Leaders to Begin Implementing Tax Collection System Reform

Release Date: Jan 28, 2009  |  Author: Janel Miller (DCED) 717-783-1132

HARRISBURG – The Department of Community and Economic Development has released maps of the commonwealth’s new tax collection district boundaries and is encouraging local leaders to create tax collection committees by Sept. 15.

The September deadline is part of a new law that Governor Edward G. Rendell signed in July that consolidates the state’s earned income tax collection system. Act 32 reduces the number of earned income tax collectors from 560 to 69. 

“Consolidating the tax collection process makes good fiscal and business sense,” said Fred Reddig, the executive director of DCED’s Governor’s Center for Local Government Services. “It means local governments and school districts will see revenue that can be invested in road work, police protection, sewer system upgrades, education and other important projects.”

A Pennsylvania Economy League study said streamlining the earned income tax collection process will recoup $237 million a year, which is now lost in the current hodgepodge of inefficient and uncoordinated systems.

Under the new law, local governments must appoint delegates to tax collection committees by Sept. 15 and conduct initial meetings by Nov. 15.  The committees will oversee the streamlining of the earned income tax collection process over the next three years, using the timetable available on DCED’s Web site. 

“Though Act 32 will not be fully implemented until Jan. 1, 2012, local governments need to begin the process now,” Reddig said.  “We are prepared to work with our local leaders to ensure a smooth transition period and better implementation of the new tax collection system.”

Maps of the new tax collection district boundaries and their political subdivisions, as well as information on Act 32, are available at www.newpa.com, or by calling 1-866-466-3972.

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