Audit Ordered of Tax Records Kept by Collection Bureau
Wednesday, August 16, 2006
BY ANDREA CICCOCIOPPO
Of The Patriot News, Carlisle Bureau
BOILING SPRINGS - All Capital Area Tax Collection Bureau records will be audited as a step in a lawsuit filed by South Middleton Twp.
The township and the bureau have been at odds since September 2004, when the township fired the bureau as its collector of earned-income tax, alleging roughshod treatment of residents.
The township sued the bureau after it subsequently got bills for tens of thousands of dollars but didn't get all the records it asked for.
On Monday, retired Dauphin County Court Judge Richard Wickersham, who is hearing the case as a special master, ruled that CTCB records must be audited, the cost of which will be split between CTCB and the township.
"From the beginning, our concern has been about the residents," South Middleton Supervisor Tom Faley said. "The more we got into it, the more we realized we were on the tip of an iceberg of a very bad situation. We discovered Capital does not do complete audits, and the issue is appropriate protection and accounting of public funds."
Capital Tax Collection Bureau collects taxes for 64 municipalities and 11 school districts in Dauphin, Cumberland, Perry, Franklin and Juniata counties, according to its Web site.
After the township fired CTCB, officials said they asked for but did not receive all the records pertaining to South Middleton.
A month later, the tax bureau sent the township a bill for $91,618, saying it discovered in a May 2003 reconciliation that the township was overpaid as far back as 2002.
In response, the township filed a civil suit in Dauphin County Court to try to force the bureau to turn over all South Middleton records.
"Since this began, our goal has been to get the court to order Capital to cooperate and to allow auditors unrestricted access to all records that the auditors deem necessary," Faley said.
In August 2005, Capital billed the township $97,541 for what it said was an overpayment from June 1, 2004, through May 31, 2005.
William V. Harbeson, executive director of the tax bureau, declined to comment on the ruling yesterday.
According to court documents, the audit will be completed by J.H. Williams Inc.
"I don't know what the audit will show," Faley said. "For the first time, light will be shining on their operation. That's got to be good for the public."
ANDREA CICCOCIOPPO: 249-2006 or aciccocioppo@patriot-news.com
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