Deadline Approaching for Changing Tax Collector Compensation

Township boards of supervisors have until February 15 to increase or decrease the compensation rate for the elected tax collector for collecting the real estate tax. Any change to the current rate will take effect for 2022 and must be done by ordinance or resolution.  

The tax collector may receive up to 5% of the amount of real estate taxes collected. For townships with populations of less than 3,000, the tax collector may receive up to 10% of the amount of real estate taxes collected. Sections 35 and 36.1 of the Local Tax Collection Law regulate the compensation of tax collectors. And while the cap is set as a percentage of taxes collected, some townships choose to set compensation on a per tax bill or other basis.  

To read the rules on setting compensation for tax collectors, click here. For a sample resolution for establishing the tax collector’s compensation, click here.