CLAYTON – Beginning next year, the city of Clayton will have resident income taxes collected by Vandalia, a move that could save the city about $4,000.

Clayton will end its contract with Cleveland-based Regional Income Tax Agency, which had been collecting the city’s income taxes since 2004.

The contract will be multi-year, but specifics have not yet been decided.

After a start-up cost of about $10,000, the city will save about $4,000 a year going with Vandalia, which will charge 2.5 percent, less than RITA’s 3.15 percent cost, According to Clayton director of finance Kevin Schweitzer.

“It will also make it easier for people who have questions about their taxes,” Schweitzer said. “They can just drive over to Vandalia and ask.”

When Englewood decided to collect its own taxes – ending it’s contract with Vandalia – it hired two employees from Vandalia which that the city didn’t need any more. Vandalia now plans to hire at least one person in its tax department when collections from Clayton begin, according to city manager Rob Anderson.

Contact this reporter at (937) 225-2157 or mkatz@Dayton DailyNews.com.