A Smarter Way to Keep Our Money Local
For years, Youngstown has outsourced its municipal income tax collection to the Regional Income Tax Agency (RITA), a third-party entity that collects taxes for numerous cities across Ohio. While this arrangement may seem convenient, it comes at a significant cost—an estimated $1.57 million per year, based on a 3% fee on the $52.48 million in taxes collected in 2023.
What if there was a better way?
By establishing an in-house tax collection department within city government, Youngstown could not only save money but also create local jobs, improve efficiency, and ensure more of our tax dollars stay right here in the city instead of going to an outside agency with no realdirect ties to our community. I say “real” because I’m aware of the fact that there is a RITA office in Youngstown, but the organization itself is based in Brecksville, outside of Cleveland.
How Outsourcing Our Taxes Costs Us More Than We Think
Contracting with RITA means Youngstown is paying a hefty administrative fee for services that could be handled internally for significantly less money. The estimated $1.57 million currently paid to RITA is money that could be reinvested into the city instead of flowing out to a regional agency.
Additionally, RITA is not headquartered in Youngstown, and it could be the case that the employees handling our tax collections are not even city residents. I’m willing to stand corrected if that isn’t the case or entirely the case. If they do not live in Youngstown, they do not pay taxes here, and they do not contribute to the local economy much, if at all, via disposable income. That means every dollar spent on RITA is a dollar that leaves our community forever.
A Youngstown-Based Tax Collection Department: More Savings, More Jobs
A city-run tax collection department would require 5 to 15 employees to manage the same tasks currently handled by RITA. These positions would include tax auditors, processors, IT specialists, customer service representatives, and compliance officers—many of whom could be hired from within Youngstown, or attracted to relocate to the city.
| Position | # of Employees | Estimated Salary | Total Cost |
|---|---|---|---|
| Director of Taxation | 1 | $90,000 | $90,000 |
| Assistant Director | 1 | $75,000 | $75,000 |
| Tax Auditors | 2-4 | $55,000 | $110,000 – $220,000 |
| Tax Processors | 2-6 | $45,000 | $90,000 – $270,000 |
| Customer Service Representatives | 2-4 | $40,000 | $80,000 – $160,000 |
| IT/Data Security Specialist | 1 | $65,000 | $65,000 |
| Legal/Compliance Officer | 1 | $80,000 | $80,000 |
Projected Savings & Economic Impact
Current RITA cost: $1.57 million per year
Projected cost of in-house department: $850,000–$1.2 million per year
Total savings: $370,000–$720,000 per year
Next Steps: Making It Happen
Phase 1: Feasibility Study (3-6 Months)
- Conduct a cost analysis comparing RITA’s fees with in-house operations.
- Secure city council approval and allocate initial funding.
Phase 2: Infrastructure & Hiring (6-12 Months)
- Lease or renovate office space, purchase software, and establish IT security.
- Begin hiring and training employees.
- Transition tax collection operations from RITA to the new department.
Phase 3: Full Implementation (Year 1-2)
- Launch operations and monitor efficiency.
- Adjust staffing and processes as needed.
- Begin full in-house tax collection, ensuring maximum savings.
Conclusion: Keeping Youngstown’s Money in Youngstown
The numbers don’t lie: Youngstown is losing millions by outsourcing tax collection to RITA when it could be saving money, creating jobs, and strengthening the local economy. A municipal tax department would bring those jobs home, generate tax revenue, and give Youngstown direct control over its finances.
Instead of sending our tax dollars to an outside agency, let’s invest in our own community—where that money can work for us. It’s time for Youngstown to collect its own taxes, employ its own people, and build a stronger financial future for everyone.
Youngstown Forward is dedicated to exploring innovative ideas that drive economic resurgence in the Mahoning Valley. Join the conversation and be part of the movement to revitalize our city.