Legislation authored by Rep. Ryan Mackenzie (R-Berks/Lehigh) that would close loopholes that have been used by unscrupulous tax collectors to perpetrate fraud passed the House April 20, by a vote of 190 to 10.  The legislation now moves to the Senate for further consideration.

        The primary goal of House Bill 160 is to close a loophole in state law that has permitted public tax dollars to be deposited into accounts that bear the personal name of the local tax collector.  Numerous cases of fraud have occurred statewide when those entrusted with public dollars deposited checks written in their names into personal accounts, as opposed to tax accounts.

        "This bill would protect taxpayers by adding another level of security and prevent dishonest officials from stealing the hard-earned money of taxpayers," said Mackenzie. "It is only common sense that government officials shouldn't be allowed to deposit public dollars into personal accounts.  That's why it had such wide bipartisan support."

        If enacted, no payment of taxes could be placed in an account that is in – or includes – an individual's name. Instead, any such deposits would have to be made into an account that bears the name of an office, title or position. For example, tax collections couldn't be placed in an account made payable to "John or Jane Doe," but they could be made to one in the name of "The Office of the Tax Collector."

        A similar measure introduced by Mackenzie passed the House last year but did not advance in the Senate.

        The legislation is in response to a number of high-profile cases statewide in which tax collectors stole tax dollars using this loophole.  In 2013, a tax collector in Berks County took $19,000 in public money.  Another example occurred in Northampton County when a tax collector in Bath Borough stole more than $230,000 in tax receipts and school funds. 

        For more information, please visit www.RepMackenzie.com or www.Facebook.com/RepMackenzie.