TRUMBULL COUNTY Agency will handle Girard's tax collections

Girard is joining 111 other local governments in outsourcing its tax collections.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- Mayor James J. Melfi has signed a contract with an agency to take over the city's tax collections.
The mayor signed the contract Wednesday with the Regional Income Tax Agency, or RITA, to take over collecting the city's 2-percent income tax that generates nearly $3 million annually beginning Jan. 1.
The nonprofit organization headquartered in Brecksville does the collections for 111 local governments in Ohio.
In signing the contract, Melfi said the city should save several thousands of dollars annually. RITA charges its members 3 percent of the collections. In Girard's case, the cost will be about $100,000 annually.
Melfi pointed out that the city is spending about $250,000 to collect the tax.
There had been two city employees collecting the tax at city hall. However, one has retired and the other will be assigned to other duties.
"We're merely an extension of the tax department," said Charles B. Hawk, RITA marketing specialist. "We do this on behalf of the city."
No difference in payment
Hawk explained that taxpayers won't experience any difference in payment. The only exception will be sending the tax return and any payment to Brecksville rather than paying at city hall.
Melfi said he believes the cost paid to RITA will be offset by increased collections.
The income tax is important to the city because 89 percent goes into the general fund that has a deficit of $1.6 million. Ten percent is used to pay off long-term debt.
Melfi termed the move "an expansion of services at a reduced cost."
The agency has 135 employees, including a legal department. Hawk explained RITA generates reports for the city administration and council, and provides the names of those who are delinquent or have defaulted in paying the tax.
Gary Chips, RITA tax director, said the city can opt out of the contract in six months and can decline to renew it annually.
RITA came about in 1971 when the state formed the Regional Council of Governments that in turn created RITA.
All nine of RITA's board members are chosen from representatives of the local governments that are members of the agency.
"We have a lot of checks and balances, which is good," Hawk said.
yovich@vindy.com