HomeMy WebLinkAbout80-033 FlowerJames D. Flower, Esquire
One West High Street
Carlisle, PA 17013
Dear Mr. Flower:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
August 20, 1980
OPINION OF THE COMMISSION
80 -033
The Ethics Commission has received a request from you
as solicitor for an advisory opinion concerning the Carlisle
Area Earned Income Tax Bureau.
The Bureau is an organization formed by certain
townships, boroughs and school districts in order to
employ an earned income tax officer, make rules and regulations,
and see that the local earned income tax is collected and
distributed to the member districts. It is organized
pursuant to Title 53 § 6910 of the General Municipal law.
That section authorizes certain political subdivisions to
subdelegate their power of the assessment -and collection
of taxes. The Carlisle Area Earned Income Tax Bureau is
composed of one representative from each of the taxing
bodies. The representatives are appointed by the respective
political sub-divisions and serve without compensation.
With one exception, all of the representatives are elected
officials within their respective political subdivisions
and are obligated to file statements of financial interest
as a result of their elected office.
The Earned Income Tax Bureau employs an earned income
tax officer, a recording secretary, a solicitor, and a
firm of auditors. Act 170 applies to "public officials"
and "public employees" of the Commonwealth and political
subdivisions thereof.
It is the opinion of the Ethics Commission that the
Carlisle Area Earned Income Tax Bureau is a governmental
body, as defined in the Act, exercising the authority and
power of a political subdivision and, therefore, is within
the parameters of the Ethics Act. Further, the Commission
James D. Flower, Esquire
August 20, 1980
Page 2
finds that the Bureau functions in more than an
administrative capacity. It exercises discretion in
compromising claims and authorizing legal action. Since
all members of the Bureau are appointed and no members
receive compensation from the Bureau, no members of the
Bureau are required to file statements of financial
interests. However, if members of the Bureau are
otherwise required to file such statements as public
employees and /or officials of any political subdivision or
the Commonwealth, this requirement must still be met. Act
170 defines public employee as:
Any individual employed by the Commonwealth or
political subdivision who is responsible for taking
or recommending official action of a nonministerial
nature with regard to:
8
4) ... auditing any person; or
5) any other activity where the official action has
an economic impact of greater than a de minimis
nature of the interests of any person.
The Commission further finds that the earned income
tax officer, and the solicitor, and the auditing firm, are
public employees and as such are required to file
appropriate statements of financial interests with the Tax
Bureau.
These persons are surely charged with the duty to
recommend official action of a nonministerial nature. The
solicitor, for example is in a position vis -a -vis the
Bureau as any solicitor to a township or borough might be.
Solicitors have generally been held within the purview of
the Ethics Act. Likewise, auditing firms may be found
covered by the Ethics Act in circumstances similar to
those expressed in Rogers #80 -035. Consequently, if the
CPA firm or individuals in that firm are appointed to fill
the office of auditor as identified by statute, code or
charter, they are considered public officials subject to
the Ethics Act. All other ministerial employees are,
however, not required to file.
Incidentally, this Opinion is distinguishable from
that rendered in relation to the Central Tax Bureau of