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Punxsutawney Area SD board reviews proposal to raise tax-collector commissions; decision deferred to February
Summary
The school board discussed a request from local tax collectors to raise commissions by about $1 per bill; finance staff outlined current rates and estimated the change would cost the district roughly $30,000 annually. Board members agreed to consider the request and place it on the next meeting agenda before a vote required by mid-February.
At a regular meeting, the Punxsutawney Area School District board discussed a request from the district's tax collectors to raise their commission rates and agreed to place the item on the agenda for the next meeting for a formal decision.
Finance staff described the current commission structure and the change requested. The district currently pays, for real estate billing, a combined set of fees that amounts to $11.85 per real-estate bill under the present schedule. Staff told the board the collectors asked for an additional $1 per bill for mailed bills, collected bills and the installment payments; if accepted across all of those charges the total per-bill cost would rise to about $14.85. Finance staff estimated the increase would raise the district's annual expense for commissions by roughly $30,000.
The finance presenter told the board that state tax-code rules make the district unique in some respects: most comparable school districts contacted do not pay for the second notice (a reminder notice) because that notice is required by the tax code; the district currently pays $1.25 for that second notice. Staff said most of the 20 districts surveyed pay less in comparable commissions, though a few were higher when calculated on an all-in basis.
Board members discussed options offered by staff, including: - making the $1-per-bill increase across mailed, collected and installment charges but leaving the second-notice fee at $1.25 because many districts do not pay that fee; - making a smaller increase (for example, a few cents) on per-capita bills; and - alternative one-time payments for adding names to tax rolls rather than increasing all commissions.
Staff noted the commission change can only be set once every four years; any change approved now would remain in effect for a four-year cycle starting in 2026. The board did not take a final vote at this meeting and agreed to place the proposal on next month's agenda. Board members noted the district must finalize any change by mid-February to meet timeline requirements for tax-billing administration.
The discussion included specific budget estimates and comparisons to nearby districts; board members asked staff to provide the survey data and the cost tables in the packet for the next meeting so they could make a final decision.
The board did not adopt a new rate at this meeting.
