News-Herald (Perkasie, PA)

Court ruling favors Pennridge tax collectors

- By Jennifer Connor

The Pennridge School Board is still discussing what to do next in regard to a decision handed down by the Pennsylvan­ia Supreme Court regarding tax collectors’ pay.

Last week, the Pennsylvan­ia Supreme Court ruled against the Pennridge School District and in favor of the district’s tax collectors, whose compensati­on was lowered from $2.25 per tax bill to 70 cents per tax bill, a 69 percent decrease, back in 2009. This compensati­on rate for the Pennridge tax collectors was set for the 2010 through 2013 period. The rate was determined by the cost of collecting taxes through a bank lockbox system, instead of tax collectors, which would achieve the same task by eliminatin­g the tax collector role.

The tax collectors’ argument stemmed from their belief that the lower rate acted as a way to force the FROOHFWRrV RuW RI RIfiFH WR PDNH wDy for implementi­ng the bank lockbox system, which would cost the district less.

The district has maintained that WKH GHFrHDVH wDV VLPSOy IRr fiQDQFLDO reasons. The decrease would save Pennridge School District $184,000 over four years.

“:H rHFRJQLzH WKH GLIfiFuOWL­HV faced by the school boards in periRGV RI fiQDQFLDO uQFHrWDLQO­y, EuW LW LV beyond the boards’ power to transform the local tax collection system by reducing compensati­on levels to such a degree that the elected WDx FROOHFWRrV DrH uQDEOH WR IuOfiOO their responsibi­lities,” wrote Justice Thomas Saylor.

The Pennsylvan­ia Supreme Court last week also ruled in favor of the tax collectors in their case against Central Bucks School District, which lowered payment per tax bill from $3.50 in previous years to 72 cents for 2010-11, 81 cents for 201112 and 91 cents for 2012-13 — a cumulative decrease of 79 percent.

The Pennridge School Board held executive sessions before and after its Aug. 27 meeting in part to discuss how the district will handle the decision, according to board President Dave Thompson.

:KHQ WKLV FDVH firVW DSSHDrHG LQ court in October 2009, Bucks County Judge Clyde Waite ruled in favor of the collectors, saying their value should be based on what other elected tax collectors in the region are

paid. Changes to this system must come from the state Legislatur­e, not the school districts, he ruled.

When the districts appealed the decision, Commonweal­th Court Judge Jim Flaherty reversed the decision in May 2010. The tax collectors failed to prove that the districts were “arbitrary and capricious” in their actions, he explained.

In reversing the Commonweal­th Court’s decision, the Supreme Court said the districts’ decision KDG PRrH WKDn VLPSOy financial implicatio­ns.

“It’s really too early for us to be saying anything,” Thompson said. “We are waiting for le- gal interpreta­tion of the results to determine the appropriat­e action we should take.”

Pennridge has spent around $130,000 in the court battle with its tax collectors, according to Kathy Johnson, Pennridge business administra­tor. Both school districts are splitting the total litigation bill.

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