New Philadelphia City Council’s Finance Committee is continuing discussions on whether to outsource municipal income tax collections to the Regional Income Tax Agency, or RITA.
Committee Chair Steve Rippeth says no decision has been made, and members want more information. He says RITA’s average collection cost over the past eight years has been about 1.22 percent of revenue, compared with roughly 2 to nearly 3 percent for the city’s income tax department.
But Rippeth says cost is not the only factor. Committee members are also considering the impact on businesses, taxpayers and city employees.
The city is facing a tight budget and is looking for savings beyond the income tax department.
Council would need to act by mid-September to begin using RITA at the start of 2027. Committee members say they are unlikely to meet that deadline and could instead consider joining in January or July.
Rippeth says waiting would give the city more time to plan a transition. It is still unclear how many income tax department employees could lose their jobs, or who might stay on.
Copyright WTUZ Radio Inc., 2026