School board votes to collect its share of real estate transfer tax

At Thursday's Columbia Borough School Board meeting, the board voted to collect a portion of the real estate transfer tax in the borough. According to Superintendent Robert Hollister, the district had not been collecting its half of the one percent tax levied on sales of real estate. The discovery was made by Acting Business Manager Keith Ramsey during an audit of the books. 

Hollister said a 1965 law provides for the tax to be split evenly between the district and the borough. Since the law was enacted, however, the borough has been collecting the tax and keeping all of it. 

"The school district's been out that money ever since," Hollister said. The amount lost approaches $100,000 on any given year, according to Hollister. "We're thrilled that we're finally tuned into that," he said, adding that the district will start collecting the revenue.

Board Director Kathleen Hohenadel explained the history behind the arrangement.  She said that when the law was enacted, an agreement was made allowing the school district to collect the per capita tax and the borough to collect the real estate transfer tax. The latter brought in far less money, because home ownership was more stable at the time.

All directors present voted to pass the resolution except for Cole Knighton, who attended via phone. Knighton said he couldn't hear the discussion. It was unclear whether Knighton voted on the issue.