KCSD administration recommends third‑party collection for earned‑income and local taxes; board plans RFP process

Keystone Central School District administrators told the board on Aug. 7 they recommend engaging a third‑party tax collector for the local services tax (LST) and business privilege tax (BPT) and continuing in‑house collection of real‑estate taxes.

Administration said the Tax Collection Committee (TCC) has already informed the district it will no longer collect earned‑income tax (EIT); some municipalities have moved to third‑party collectors, and several are negotiating with Berkheimer and other vendors. The district recommended outsourcing LST and BPT to a commercial collector and retaining real‑estate tax collection in‑house. "The administration recommends that we find a third party tax collector for LST and BPT and that we continue to collect in house real estate taxes," the superintendent said.

Board members asked that the district prepare a request for proposals and bring prospective collectors in to present to the board — with an eye toward competitive fees, local customer service and whether vendors would offer a local, brick‑and‑mortar presence. Members discussed inviting other municipalities to join presentations so the county’s municipalities can evaluate options together and potentially obtain better pricing through coordinated procurement.

Administrators said several municipalities had already elected to move to Berkheimer and that Berkheimer has proposed placing staff in a local collection office and considering current district staff for hiring at the local site. The board asked administrators to prepare RFP materials and to attempt to have proposals and vendor presentations ready for a September work session, with a target implementation date for the transition of Jan. 1, 2026, if the board chooses to outsource.

No formal contract award occurred at the Aug. 7 meeting; the board asked for further information and vendor presentations before making a decision.