Luzerne County Government

March 30, 2010

County close to privatizing tax claim office

On April 14, commissioners expected to adopt ordinance, then vote on hiring firm.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

The privatization of Luzerne County’s tax claim office will take effect April 14 if county commissioners adopt an ordinance publicly released today.

Commissioners also are expected to vote on April 14 to hire a private company to handle tax claim services.

The choice is between two entities at this point, county officials say: Portnoff Law Associates in Norristown, Montgomery County, and a joint proposal submitted by Northeast Revenue Service LLC and the law firm of Wetzel, Caverly, Shea, Phillips & Rodgers, both in Wilkes-Barre.

Northeast Revenue shares the same address – 15 Public Square, Suite 210. Attorney John P. Rodgers, who is part of the firm, is listed as president of Northeast Revenue on state corporation records.

Portnoff Law Associates, established in 1989, represents 70 taxing bodies in Pennsylvania, according to the company’s Web site. Company head Michelle R. Portnoff was not available for comment Monday.

Northeast Revenue Services, formed in 2006, specializes in municipal and financial advisory services, according to the company’s site. The Wilkes-Barre law firm represents several area municipalities and has handled the collection of municipal liens. Rodgers could not immediately be reached for comment Monday.

The county’s ordinance, which must be publicly released at least seven days before an adoption vote, says an agreement with a private company will be negotiated through Dec. 31, 2011, with the option to renew two additional one-year terms.

The county’s tax claim office collects delinquent taxes for the county, school districts and municipalities.

Only one or two counties in Pennsylvania have privatized their tax claim offices, said county Chief Clerk/Manager Doug Pape.

Commissioners voted to seek proposals from interested companies in November, in part because the county’s outside financial consultant recommended tax claim privatization to save money and improve lagging tax collection performance. Eight proposals were submitted.

Tax claim gets involved with properties when taxes are unpaid by Dec. 31. Debts forwarded to tax claim are subjected to additional penalties and costs. Properties are supposed to go to back-tax sale if taxes are unpaid for two years.

However, the county’s tax claim office has been heavily criticized in recent years because some politically connected property owners stayed out of back-tax sales, even though these property owners were not keeping up with payment plans or paying at all. Federal agents have interviewed workers and reviewed records about properties questionably removed from past back-tax sales.

The county’s request for proposals said the new company must treat all property owners “consistently and without favoritism” and keep detailed records of all collection attempts. All money collected must be deposited in the county’s account within one business day, and the company won’t have authority to make withdrawals from this fund, the proposal said.

The company must also give the county a monthly report, by parcel number, detailing money received and money owed.

The county tax claim office employs seven full-timers, and a worker in the office said Monday that the county has not divulged its plans to employees.

Pape said the workers wouldn’t immediately lose their jobs on April 14 because there will be a “transition period.” The chosen company may also be interested in hiring some of the county workers, he said.

County minority Commissioner Stephen A. Urban said the chosen company will be paid through fees collected on delinquent properties. The company may also pay the county rent to maintain an office in the county courthouse, Urban said.

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