Case Results

eCollect Plus successfully bid on the City of Chester contract to collect all taxes and conduct an audit compliance program.

Background

The City of Chester is a financially distressed community of the 3rd class located in Delaware County, Pennsylvania. Chester is designated as an Act 47 financially distressed community by the State of Pennsylvania. Despite significant growth though new employers such as Harrah’s Casino and the Philadelphia Union Major League Soccer Team, the City retains the financially distressed designation.

The Solution

The city’s previous tax collector ceased operations and the city was left to make sure tax revenue remained consistent, and to rebuild their tax collection rolls. The State of Pennsylvania consolidated the collection of earned income tax through the passage of Act 32 of 2008. Although this reduced the number of collectors of earned income tax statewide, it also added increased responsibility and reporting requirements on the already overburdened and overwhelmed collectors. While earned income tax collection statewide has been overhauled, the other tax levies (including the gross receipts tax) remain a source of inconsistent collection by the largest private collectors. Municipalities that collect the tax in-house face staffing issues and do not have the expertise in conducting field audits.

The Results

eCollect Plus established itself as the preeminent firm that used analytics and field audits in conjunction with the legal team to effectively collect taxes other firms were neglecting to gather.

eCollect Plus systematically analyzed the records received from the previous collector and quickly identified sources of missed revenue. eCollect Plus utilized its audit staff to schedule field audits within the first 30 days of service to the city. In less than one year, eCollect Plus has identified in excess of $3 million in delinquent taxes and succeeded in collecting $1 million.

Delinquent taxes identified in less than one year


$3M

Delinquent taxes successfully collected


$1M

The City of McKeesport engaged TurnKey Taxes to convert and import their data where it could be scrutinized.

Background

McKeesport is a city in Allegheny County in the U.S. state of Pennsylvania. It is situated at the confluence of the Monongahela and Youghiogheny rivers and is part of the Pittsburgh Metro Area. The population was 19,731 at the 2010 census.

The Challenge

The City of McKeesport had a detailed set of business records and wanted to cross- reference their information against other data sources and increase their tax base while automating their tax collection process.

The Results

eCollect Plus analyzed the records and supplemented the data by utilizing subscription data as well as performing a physical census in order to identify sources of missed revenue. Within the first 90 days, over $600K was identified by eCollect Plus through audit and discovery – this represents 85% of the total 2013 budget.

“This was a total team effort”, said turnKey CEO Mark Schuster adding that “Cooperation and communication is key. The administrative staff in McKeesport could not have been more supportive in our efforts to streamline the process of validating and converting the data. Everyone from the Mayor on down was 100% on board. We may provide the technology, but in the end, the success of the project is because they wanted to improve — plain and simple.”

Moving forward, the City plans on streamlining other revenue streams.

Within the first 90 days, Audit and Discovery identified


$600k

Portion of the total 2013 budget identified


85%

eCollect Plus successfully bid on the Hanover Township contract to collect business privilege tax starting at the end of 2012.

Background

Hanover Township is centrally located municipality located in the Wilkes-Barre Scranton geographical region. The Township is centrally located near Route 81, Route 29 and the Pennsylvania Turnpike. The Township also has a ten year Keystone Opportunity Zone Area which has attracted many national companies for the tax benefits of this program. Although the Township is on sound financial footing, they have experienced little to no increase in the collection of their business privilege tax.

The Solution

The Township’s previous tax collector ceased operations and the Township was left with the task of making sure tax revenue remained consistent as well as ensuring that all businesses were paying their required tax pursuant to the Township code. Additionally, the Township would require a full compliance audit of the businesses located in Keystone Opportunity Zones that have since had their KOZ status expire.

The Results

eCollect Plus was able to collect 10% of their annual business privilege tax budget in the first sixty days of service. The Township saw a sizable percentage in increased collections during 2013 and eCollect Plus has recovered over 50% of the Township budget in 2014 through the performance of a single audit. eCollect Plus systematically analyzed the records received from the previous collector and supplemented the data by utilizing subscription data as well as performing a physical census in order to identify sources of missed revenue. eCollect Plus immediately mobilized accounting, audit and management staff in order to maximize the opportunity of recovering the potentially lost revenue.

10% of Annual Business Privilege Tax Collected in First


60 Days

2014 Township Budget Recovered From Single Audit


50%+