As local government officials across the state work out the details of Act 32, a law consolidating earned income tax collection, the Turtle Creek Valley Council of Governments is considering stepping into the tax-collection field.

Act 32 divides areas throughout the state into regional tax-collection districts, so employers can report earned income tax data to collectors for those districts rather than to individual municipalities and school districts.

The plan, which will reduce the number of earned income tax collectors in the state from 560 to 69, will take effect in January 2012.

Allegheny County has been divided into four collection districts. A tax collection committee, featuring local government representatives from each area in the district, is responsible for naming a designated tax collector for the district.

Last Thursday, the executive board of the COG unanimously approved a plan to explore creating an agency to become the appointed tax collector for Allegheny County's Southeast Tax Collection District.

Although only in the planning stages, the business would ideally be an arm of the COG that would operate in a similar manner to current tax collectors, but redistribute profits to its member communities.

"Instead of some person pocketing the profits each year, they will proportionally give money back to communities," said Joe Costa, executive board member and a Wilkins commissioner.

He announced the plan during a township commissioners meeting on Monday.

"The executive board just thought this was a good way of strengthening the COG and giving back to its member communities," said executive director Amanda Settelmayer.

She emphasized that the idea was in its preliminary stages and said details regarding a budget, start-up costs and other expenses must be worked out before knowing whether it could be implemented.

She also said profits from the plan would likely support multi-municipal plans in addition to going back to communities. A business plan should be complete by April.

Wilkins Commissioner Michael Szoko, the township representative for the Act 32 Tax Collection Committee, said Berkheimer Tax Administrator and Keystone Collections Group have expressed interest in being the district tax collector. But the COG's idea could provide another option.

"The thing is, with the COG, if they're going to return some dollars to us, I'd be heavily in favor of that," Mr. Szoko said.

He also took issue with the concept of a weighted vote on tax collection committees, saying the tax collection district's 45 municipalities and 10 school districts deserve equal votes.

Under the weighted system, communities with higher populations and earned income tax revenues have votes that count for a higher percentage of the total vote.

Mr. Szoko said he will push to amend the Southeast District's bylaws so that all votes are equal.

Jamie Yates, spokeswoman for the Department of Community and Economic Development, said the weighted vote was implemented to start the first committee meetings, and that committees are free to change to another structure.

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