Niles officials still balking at outsourcing tax collections

NILES

State Auditor Dave Yost is not backing down from his request for the city to outsource income-tax collections.

In a letter to interim Treasurer Janet Rizer-Jones, Yost has again called for the “fiscal recovery plan to outsource the income-tax collections to RITA (the Regional Income Tax Agency.)”

Rizer-Jones said, however, “mail is being opened daily and deposited timely” and that income-tax collection for the year is more than $437,000 above what was collected at this time last year.

Outsourcing was a component of the recovery plan put together by former Mayor Ralph Infante, but was removed from the amended plan developed by Mayor Thomas Scarnecchia. Scarnecchia said he wants more answers about RITA before he will consider changing his mind.

“The cost of outsourcing income-tax collection versus retaining it in house must accurately reflect a cost savings,” he said in a letter to council.

RITA’s costs are not an issue for Kyle Miasek, however, Youngstown deputy finance director.

Miasek said RITA charges its Ohio cities 3 percent each year up front, but then pays rebates in June of the following year. As an example, Youngstown has been using RITA since 2006.

Read more about the matter in Friday's Vindicator or on Vindy.com.