![]() DIVISION OF TAXATION
DEPARTMENT OF FINANCE CITY OF CLEVELAND CENTRAL COLLECTION AGENCY
May 26, 2013
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Services ProvidedTax collection is the primary purpose of the Central Collection Agency. The Agency performs all functions necessary for collection of the tax with the exception of actually filing court cases against taxpayers. The Agency is responsible for mailing returns, processing all payments, billing taxes due, assessing penalties and interest, issuing refunds, mailing delinquency notices, preparing court cases and distributing the taxes collected to the municipalities. The Administrator within the community serves on the Advisory Board of the Agency as a liaison between the Agency and the community. Taxpayer assistance is provided as needed within the community during the filing season or if large numbers of delinquent taxpayers are called in for failure to file and/or paying the taxes due. This service is normally provided within existing offices within the community. A toll free number is provided for the taxpayers' use in contacting CCA offices. The telephone number is 1-800-223-6317. All tax returns are verified for accuracy and random audits are performed on a very high percentage of accounts. All refund requests are audited prior to issuing refunds. Several methods are employed to ensure all taxpayers pay the taxes due. As an example, we match state name and address files annually with our own files to pick up new taxpayers. Most communities now require all residents to file a return or exemption certificate annually. We receive a listing of real estate transfers from a service. When a residential property changes ownership we contact the new owner to establish an account if necessary. We also utilize W-2 information filed by employers in other CCA communities After contracting with the Agency, a survey of employers in the community is conducted. This ensures that they are filing and properly withholding the taxes from their employees. We use other sources of information to pick up additional taxes, and we are investigating possible new sources of information for our compliance work. Community AccessCommunity Access is service that is offered only to our member communities. It allows our Member Community Tax Administrators to remotely access their Community Taxpayer's Income Tax Information without ever leaving their computers. If you're currently a Member Community of CCA, all you need to do is meet the requirements on the following PDF document and you can access your Taxpayer Database via a customized version of our software MITIS.
OrdinancesWe ask our member communities to try and stay as uniform in their ordinances as possible. Although the rates and credits vary by municipality, we try to maintain uniform penalty and interest rates, due dates and filing requirements.Distribution DatesFunds are distributed by wire transfer to the community regularly on the Monday following the second Wednesday of each month. All funds held by CCA are invested daily and the interest earned is allocated to the member communities to reduce the gross cost allocated to the community.CostsAll expenses of the Agency are allocated to the member communities based on a two factor formula. The first factor is the percentage calculated by dividing the revenue collected for the community by the total revenue collected by the Agency. The second factor is the percentage calculated by dividing the number of transactions recorded for the community by the total transactions recorded by the Agency. The cost allocated to the community is calculated by multiplying the average of these two percentages by the total Agency cost.The overhead costs are deducted from the monthly distribution. Although the contract provides for maximum of 5% to be withheld, CCA has a policy of only withholding an amount sufficient to cover the actual costs. In most communities this amount is approximately 2% of the taxes collected. |
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