“We’re always looking at how can we best utilize taxpayer dollars and how can we be most efficient in the delivery of the service that we provide to our community,” City Manager Bryan Heck said during the podcast. “And so I think it’s important to kind of spotlight that there is a savings from an operational perspective.”
RITA, an Ohio nonprofit that handles municipal income tax collection for more than 400 state municipalities, has access to federal tax filings that the city does not have and can find individuals who have not paid income taxes to the cities in which they reside through IRS data. This is beneficial as remote work has become common in recent years, Eviston said.
Eviston emphasized that those filing by the April 15 deadline for 2024 income tax will see no changes. After July 1, customers will go through RITA, though the city will staff a RITA liaison in the income tax division.
The city said previously that six jobs would be eliminated due to the move but added it was restructuring internally and giving employees time to find other jobs within or outside the city.
Heck said under the RITA agreement, taxes will be easy to file. They can be done from home, through tax consultants or in person.
The city is considering having additional RITA staff at city hall leading up to the April 2026 tax deadline to help the transition, Eviston said.
More than 82% of the city’s general fund revenue comes from income tax, which is how the city performs “core vital services,” like policing, dispatch, community development and economic development, Eviston said.
“Income tax is our lifeblood, so transitioning to RITA, undeniably they’re the best collection agency in the state, and so it’s our duty to ensure that we are collecting every dollar that is due to the city so that we can carry out those core services that are vital to our community,” Eviston said.
Cities do not receive sales tax revenue, and the majority of property tax revenue goes to school districts, Heck said. A small portion of property taxes in Springfield goes toward a police levy fund, police and fire pension and the Springfield conservancy district.
“I just think it’s important to highlight as we’re talking about income taxes that cities unfortunately have become over-reliant on income tax, and that’s been at the direction of the state,” Heck said.
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