Saint Marys tax collector defends local services tax, questions move to Berkheimer

Charles Blom, Saint Marys' elected tax collector, told the City of Saint Marys Council on Nov. 17 that his office has long managed the city's local services tax and pushed back on statements at a prior meeting that the city lacked the knowledge to collect the levy. Blom said he brought the presentation to clear up misunderstandings and to flag contract terms proposed by Berkheimer Tax Services.

Blom defined the local services tax as "a $52 charge for everybody that works in the city of Saint Marys," and explained allocation rules: about $47 of the charge is allotted to the city and $5 to the school district. He said the tax is based on workplace, not residence, and traced administrative changes that followed a 2008 state reporting law requiring more frequent, quarterly filings.

In a series of numerical assertions, Blom said the city collects about $360,000 a year in local services tax; roughly $325,000 goes to the city and about $42,000 to the school district. "We collect about $360,000 total in local services tax," he said. He added that his office's compensation for collection has been modest (about $4,800 under his stated rate) and that a third-party firm would charge a higher percentage: Berkheimer's proposal, he said, would pay the contractor roughly 2.5% to collect the same revenue.

Blom disputed remarks at an earlier meeting that "a lot of people [are] not paying," saying his office uses Berkheimer reports, business listings and local notices to identify taxpayers and that the office has an 818-entry business roll. He said Berkheimer has sought files from the current collector to make a transition easier and that Berkheimer's contract includes indexing the fee "based on economic trends," a clause he said raises questions about oversight and cost over time.

City officials present did not vote on any contract with Berkheimer during the Nov. 17 meeting. Blom asked council members to consult staff who know collection detail before approving changes and to ensure any contract terms are explicit about who will maintain and update the taxpayer roll.

The council proceeded with other agenda business during the meeting, including several grant applications and budget publication items; there was no formal vote recorded in the transcript to transfer LST collection to Berkheimer on Nov. 17.

What happens next: Council members discussed the matter and continued with the agenda; any formal decision to change the collector or to award a contract to Berkheimer would have to be recorded in a future agenda or meeting notice.