Lower Burrell officials say the city will save 15% more in collections by switching to a new tax collector for delinquent local services and business privilege taxes.
City council on Monday moved Lower Burrell’s collection of delinquent LST and business privilege taxes over to Berkheimer Tax Administrator.
Mayor Chris Fabry said the change allows the city to keep a larger portion of the funds collected.
“The previous collector retained 20% of what they collected,” City Manager Greg Primm said. “Berkheimer will only retain 5% of what they collect.”
Primm said the city’s previous contract with Collection Service Center took effect in 1988. Reached Friday, the Collection Service Center had no comment.
Primm couldn’t delineate a monetary amount of how much the city would save until the end of this year. Last year, he said, Lower Burrell had $17,877 in delinquent business privilege tax and $479 in delinquent local services tax.
“I expect there to be a significant savings,” Primm said.
The contract with Berkheimer is for five years, he said.
Fabry applauded the move.
“This council prides itself on being fiscally responsible, and this move represents that thought process,” he said. “This will allow us to put more tax dollars into the city instead of an independent firm.
“We will continue to explore any cost-saving measures throughout the city if they are in the best interest of our community.”
