Concerns remain over tax collections in Chadds Ford

Posted by Rich Schwartzman on January 9, 2013

Former Chadds Ford tax collector Bruce Prabel remains concerned over the collection of Business Privilege and Local Services taxes.

Prabel made a two-hour presentation to the Board of Supervisors during a special meeting on Dec. 13 and he followed up with another presentation during the Jan. 7 meeting.

Prabel said the late fees charged by Keystone Collections, the new agency collecting the two taxes, are excessive and could lead to deliberate mismanagement

“The contract has built-in incentives to mismanage or encourage late payments,” he told supervisors.

The BPT is a tax of $100 per year on a business operating in the township. Keystone gets $3 for collecting the money when collected on time. However, Prabel said the contract also calls for Keystone to get $6 for late filing. The business would also pay an additional $5 for filing late.

Keystone also gets 1.35 percent for collecting the LST, which is a tax of $1 per week per employee working in the township. There is a late processing fee of $5, Prabel said.

He added that he’s concerned that late fees would come out of what the township should be getting.

“The contract should be null and void,” he said. “The level of fees is staggering.”

Kathy Labrum, the partner of township solicitor Hugh Donaghue, was filling in for Donaghue when supervisors first voted on the contract with Keystone in November. She said during the meeting this month that late fees are paid by the taxpayer, not the township.

Donaghue said Prabel’s comments should be shared with Keystone, but that the contracted should not be invalidated.

Supervisors, by resolution, affirmed the contract, but Supervisor Keith Klaver amended the resolution saying Prabel’s comments had to be reviewed with Keystone.

About Rich Schwartzman

Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.