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EAST LIVERPOOL -- During the East Liverpool City Council Finance Committee meeting held Tuesday afternoon, Tax Commissioner and Deputy Director Sharon Williams gave a presentation on how she believes updating the tax office with electronic filing software is the better and less costlier option then signing with RITA (Regional Income Tax Agency).
City council members had previously discussed and drafted an ordinance to sign with RITA and allow the agency to handle the filing and collection of city income taxes and downsizing the city's tax officer, but that matter was tabled pending further discussion and research. Some council members wanted to postpone the decision until after the first of the year when the city's administration changes.
Williams noted that the city collected $270,644 more in taxes than in the previous year due to notices they send out every day and people bringing in past tax returns. This is almost a 9 percent increase. Most of the people who come into file past due taxes are requesting a payment plan, but the money is coming in now, Williams said.
Williams noted that her office has started going through the rental list which hasn't been done in the past and has revealed a number of hidden people in the city who have not filed taxes. She has found as many as four people in one property.
"We are now going to bring the tax office into the 21st century with new programs," she said.
Williams is looking into getting software for eFile and ePay which will allow residents to file and pay city taxes electronically by simply entering the information from their W2 forms. The software will do all the calculations for them.
Williams noted that agencies such as RITA requires tax payers to pay the first quarter of taxes for the following years with the estimated taxes for the following year. East Liverpool does not require that.
The software will allow for document upload and electronic signature.
Taxpayers have the option to set up payments and automatic payment deductions from their bank accounts if they choose. Williams said she has had many people ask her about automatic payments which they are not currently set up for.
There would be a one-time payment of $19,470 to purchase and install the software.
"This is a one-time deal compared to the $92,000 a year you want to pay RITA," Williams said.
The yearly maintenance fee, which includes all upgrades and tech support, is $8,400 a year and there is already $8,200 of that in the budget, according to Williams.
Council member Fred Rayl told Williams that he believes RITA has access to all federal and state tax returns and could find out if there were people in the area who are not paying city taxes. Williams responded the city tax department has access to the state list and the Ohio Department of Taxation sends them the list of everyone who files a state tax in that zip code. She also has the renter's list, the voters' registration list and the water department's list and they can access and cross reference everything on the computer.
Rayl asked how many years the software will work, and Williams said as long as they pay the yearly maintenance fee, they can cancel anytime they want. The system can be put in place in a couple of days and the tax office staff could learn it in a week or two and have it ready to go before tax season.
Williams said that she spoke with other municipalities who were considering going with RITA and opted against it.
She also noted that she spoke with those who use the eFile system and was told that they were really pleased with it and that the first year was slow because a lot of residents didn't know about it.
Rayl said he would speak to the Finance Committee and pull the auditor in as well and would probably have an answer for her by the next finance meeting.
"Personally, I think you guys are doing a good job and I don't have an issue with it," Rayl said to Williams.
Williams will be giving her presentation again on Thursday afternoon at 5 p.m. to the Economic Committee. RITA has also been invited to present at the same meeting.
Williams will also be at the Sept. 5 council meeting.
Following Williams' presentation, the Finance Committee discussed and voted on presenting multiple ordinances to council to vote on.
There were two pieces of legislation From Planning Director William Cowan's office.
The first one is requesting a Community Reinvestment Agreement (CRA) with Jessica Ludwig DBA as Edge Hair Studio.
Cowan said Ludwig was fixing up a building for a salon and is applying for tax relief for 15 years for the work she is doing to fix the building for her business.
The next one would authorize Cowan on behalf of the city to enter into an agreement with Environmental Design Group for professional services for the bike trail which the city received a grant for.
The committee voted to send both pieces on to council for approval.
Other legislation approved to send before council included the authorization of the auditor to pay vendors who provided goods and services to the city, creation of a new line item fund for the fire department ARPA grant, amending the budget ordinance and adjusting appropriations and the creation new line for the Riverfront trail project
The East Liverpool council which typically meets the first Monday of each month at 6 p.m. in Council Chambers at City Hall will be meeting Tuesday, Sept. 5, due to the Labor Day holiday.
kgarabrandt@mojonews.com