Income-tax collection plan proves to be very successful

Staff report

campbell

A city income-tax subpoena program was a much better success than predicted.

The program, which targeted 300 nonfilers who were believed to owe the most money, also offered amnesty from penalties and interest when taxes were paid in full.

It ran Aug. 18-20 at the Regional Income Tax Agency office in Youngstown and was expected to collect about $8,000. It’s collected $18,000 so far, and RITA is still counting, said city finance director Sherman Miles.

Miles said publicity in The Vindicator likely helped the program.

He said the RITA offices were crowded with people.

“Even people who weren’t subpoenaed came in,” he said.

The city also is running a tax-amnesty program through Nov. 15. People who have filed returns but haven’t paid their taxes have been notified, Miles said.

The amnesty and subpoena programs were included in the city’s five- year financial-recovery plan, which it has to have while it is in fiscal emergency.

The programs were initiated at a time when income-tax revenues were dropping for the cash-strapped city. Collections were $100,000 behind where they should have been for the year by the end of July, Miles has said.