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Springdale council hears RITA presentation on outsourcing municipal income-tax administration
Summary
Council received a first reading and a presentation from the Regional Income Tax Agency (RITA) about administering Springdale’s municipal earnings tax; RITA estimated annual costs of $208,000–$230,000 (about 1.1%–1.2% of collections) and proposed a potential January 1, 2026 conversion start if council joins.
Springdale City Council held a first reading of Ordinance 30-2025 and heard a 45-minute presentation from the Regional Income Tax Agency (RITA) on a potential agreement to administer the city’s earnings tax.
Angela Vise, RITA’s Southwest liaison, told council the agency is a nonprofit regional council of governments that provides full-service municipal tax administration to member communities. She said RITA processes a large volume of filings, emphasizes data security (SOC controls, annual disaster-recovery testing, internal/external penetration tests) and offers online filing, a call center and secure messaging for taxpayers. “Everything we do can be done online,” Vise said, adding that RITA’s compliance and federal-tax-information functions have generated additional recoveries for member municipalities.
Why it matters: Administration framed the item as a potential workload and revenue improvement. Mayor Hawkins and city staff said the city could preserve in-person local service while gaining online filing, expanded collections tools and access to RITA’s federal-tax-information matching. That, officials said, could uncover taxes the city is not currently recovering.
Key numbers and timeline: Vise said RITA’s estimate for Springdale’s annual cost of collections is $208,000–$230,000 (about 1.1%–1.2% of roughly $19 million in collections). She said the agency’s 2024 FTI matches produced about $23 million in collections across member municipalities and that the RITA network serves municipalities of varying sizes. RITA proposed a conversion effective Jan. 1, 2026 if council approves joining; alternatively, a mid-year conversion (July 1) is possible.
Questions from council focused on staff impact and resident access. Councilmember Jacobs asked how different service levels under RITA would affect city positions; Mayor Hawkins and City Administrator Yule told council that existing city tax staff would remain and that the partnership could reduce the need to fill two currently vacant account-clerk positions. “Nobody will be terminated,” Mayor Hawkins said. Mr. Ewell of administration said staff would retain final decision-making authority over appeals and local code amendments.
Next steps: Ordinance 30 received a first reading and a presentation; administration will field follow-up questions from council members and return the item for further consideration at an upcoming meeting. Council did not vote on the ordinance during this session.
Sources: Presentation and Q&A with Angela Vise, RITA liaison; Mayor Hawkins; City Administrator Yule; and administration (transcript of Aug. meeting).
