Wednesday, September 23, 2009

MGB to turn to Chautauqua for help addressing EIT issue--let me count the ways that this is wrong

At the last Borough Council meeting, the prez tried to comfort us by stating that the Boro will be pulling in the Chautauqua to try to resolve this EIT/budget issue. This may be an egregiously wrong thing to do and here's why:

(I have a video of the meeting and those comments if any one wants a copy.)

First:
In all my research and reading of primary source documents, I can find NO LEGAL BASIS for Mt. Gretna Boro (or Chautauqua) residents paying anyone an alleged EIT overpayment. Some people think this is the complicated part, but its not--its the mysterious part. Mysterious because even the EIT Bureau, the entity responsible for administering this tax, conveniently "doesn't have" any supportive documentation for this claim. So, because no one is presenting any legal evidence that proves any distribution was done incorrectly, no one can prove that any entity was "overpaid."

Further, even the EIT Bureau's own report on the issue demonstrates that the school districts and municipalities each received a consistent percentage of the overall EIT pot, year after year. This pattern contradicts their assertions that they can't determine what their own distribution plan was and that Foltz was not being consistent with the distribution plan. So, the only evidence presented so far demonstrates a plan and that the distributions were consistent year after year. Translated, that means that there is no proof that anyone got over or under paid according to the distribution plan. And, that means that there is no basis for any adjustments.

So, to municipal leaders and solicitors: STOP ENGAGING IN THESE OVER/UNDER REPAYMENT DISCUSSIONS. There is no foundation for them, and you lawyers are charging us for this activity. That's wrong. In fact, in Mt. Gretna's case, its really wrong since our solicitor is also representing several other municipalities in these discussions. This brings up a whole slew of questions like, does he also represent a "complainer" wanting money from us, does he divide his charges up equally between his municipal clients, or does he charge us all as if we were his only client while he attended that meeting...

Second:
The current distribution of EIT revenue is apparently determined soley by what your residents paid in. In other words, Keystone's distribution plan is a deviation from the original distribution plan and is a deviation of the plan evidenced by the EIT Bureau's own report. This plan, according to my research, is an adminstrative policy or procedure created contemporaneously with the law creating the LCEIT. Therefore, it can't be changed just by the Bureau hiring a new 3-third party collection agency and giving them distribution instructions that deviate from a contemporaneously created administrative procedure.

So, our municipal leaders and solicitors need to start demanding that we get our appropriate distribution, and not this new thing that Keystone has been told to do.

Third:
These tax structures include an administrative process for pursuing complaints. The allegedly under-paid entities can file a complaint and avail themselves of the administrative process for determining this issue. Pressuring another entity's taxpayers to give you their cash using another route is inappropriate, at best, and has no legal basis.

So, to those entities claiming that they were "underpaid", suck it up, gather up your evidence, ask for a hearing, attend it and make your best case. Stop trying to extort money out of your taxpaying neighbors when you aren't even willing to show us your evidence and that you really have something to complain about.

Now, if you made it this far, then this is probably a legit and serious concern of yours. If so, then I think it is important that each of you concerned persons WRITE a letter to the Boro and attend the next meeting. Because who knows what they will commit us to when we are not looking.
P.O. Box 61 Mt. Gretna, PA 17064 ; Meeting time: Second Monday, 7 p.m., board room behind post office. Residents desiring to attend can stop by my place a little after 6 for a quick happy hour before the anticipated dreary hour.

By the way, the EIT Bureau report suggests that Mt. Gretna Borough is to receive, annually, 0.35% of the total EIT collected by Lebanon County for the year. The area designated by our school district and its municipalities is to receive 26% of the annual collection. I say this to suggest that you municipal officers can check to see if Keystone is sending you your proper amount. I will post the distribution pattern I discovered from the report as soon as I have crunched all the entities' numbers.

No comments: