State auditori's office responds to Nlles mayor's rejection of tax outsourcing

NILES

The communications director for Ohio Auditor Dave Yost blamed the opposition to outsourced income-tax collections by Mayor Thomas Scarnecchia on “political reasons” that overlook the 2014 performance audit showing annual savings of $138,000 with an outside agency.

“We suspect the savings may be even greater,” said Benjamin Marrison, who described the $138,000 as “a conservative calculation.”

The savings include the state auditor’s suggestion that one full-time employee be retained for customer service.

“Financially, the data makes clear such a move would be good for the city’s taxpayers,” Marrison said.

The communications director was reacting to today’s Vindicator story, in which Scarnecchia, in a letter to city council, said he was looking for proof of cost savings before going with Regional Income Tax Agency and eliminating the tax department.

The mayor had removed the outsourcing provision from the city’s financial recovery plan that had been put in by his predecessor, Ralph Infante.

Marrison suggested the mayor pay closer attention to the figures in the 2014 audit, which show the average cost for outside agency tax collection is 2 cents per dollar collected compared with the city’s higher cost of 5 cents per dollar.

“While the savings may seem insignificant, those pennies add up to far more than $100,000 and some peer communities are paying less than 2 cents on the dollar,” Marrison said in a written statement.

Read more on the situation in Saturday's Vindicator or on Vindy.com.