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Keystone Central board presses for clarity as tax office closeout stretches into 2026
Summary
Board members pressed administration for a clear timeline and for a briefing from Berkheimer as the district reconciles 2025 earned-income-tax accounts before transferring collections; administrators said reconciliation of 3,936 employer accounts and 12,419 taxpayer accounts requires staff time and overlap into 2026.
The Keystone Central School District board spent the bulk of its Jan. 8 meeting focused on ending in-house earned income tax (EIT) collections and completing a planned transfer of tax-collection duties to an outside firm, Berkheimer. Board members urged administration to bring Berkheimer before the board for a February briefing before setting any final transition dates.
Board members and staff said the closure requires more time than a simple calendar flip. "Closing out a tax office takes time," a tax office staff member told the board, noting the district must reconcile 3,936 employer accounts and 12,419 taxpayer accounts for 2025 before files can be cleanly transferred.
The discussion recounted a shifting timeline: previously suggested end dates included Dec. 31 and later months, and board members said the moving target has caused confusion. A district representative said some staff were retained past Dec. 31 to finish 2025-specific tasks. "We don't want to leave them with a mess," the tax office staff member said, describing the district's goal of delivering reconciled records to the collector.
The board also discussed transition costs. Members referenced a $50,000 consultant/transition fee connected with the transfer; administration clarified that Berkheimer's implementation and collection arrangements affect when and how costs are assessed and which entity bears them. A district representative said portions of transition costs come from municipal commissions tied to EIT collections.
Administration and tax office staff described an operational overlap between collection years: the district must continue closing out 2025 returns (which can include late submissions through October and reconciliations into early 2026) even as Berkheimer begins collecting for 2026. That overlap, staff said, is why some 2025 work will extend several months into 2026.
The board agreed to invite Berkheimer to a February meeting (work session or voting session) to explain its role, the services the district is paying for and specific timeline options before the board sets a firm closure date.
What happens next: Berkheimer will be asked to brief the board in February; the board will set a final timeline for transition after that briefing. The transcript did not record a formal vote on the transfer or a final effective date.
