Earned income taxes for Avalon Borough and the Northgate School District will be collected next year by a new company, as both local government agencies have opted to hire the regional tax collector a year early.

State law -- Act 32 -- requires that EIT collection be consolidated throughout the state, in most cases on a county-by-county basis. Because of its size and population, Allegheny County has been divided into four tax collection districts, with local municipalities and school districts located in the Allegheny North Tax Collection District (ANTCD).

The ANTCD board recently selected Keystone Collection Group of Irwin as the EIT collector effective Jan. 1, 2012. At that time, all employers will deduct EIT from all employees and submit it to Keystone. Currently, employers deduct EIT only from employees who reside in the municipality in which the business is located.

The Northgate School Board's finance committee recommended that the district switch to Keystone a year early, however, on Jan. 1, 2011. Chairman Daniel O'Keefe said that although employer deductions will not change until 2012, the district could benefit by having its information already in place with Keystone before the big change-over date, and the move will save the district money.

Board member Gary Palladin and business manager Marilynn Berner said that Northgate currently pays Pennsylvania Municipal Services (PaMS) 1.6 percent of taxes collected. Keystone, they said, will be paid 1.42 percent.

In Avalon, where EIT revenue is still collected by the elected real estate tax collector rather than an outside company, the savings will be even bigger. Borough manager Harry Dilmore said that the tax collector is paid on a sliding scale depending on what percentage of revenue is collected, but that overall the borough now pays abgout 5 percent.

School board president Susan Nolan said that taxpayers will find a whole new level of customer service with Keystone. Forms and tax returns can be filed on-line, she said, and the company scans all documents and correspondence so that personnel can access complete information when taxpayers have questions.

"It sounds very appealing on a lot of levels," Nolan said.

O'Keefe said that Keystone was "overwhelmingly felt to be the best choice."

The early switch to Keystone was approved Monday evening by the Northgate School Board, and the following night by Avalon Council.