Buckeye Institute Appeals Dismissal of Cleveland Tax Refund Lawsuit
Cleveland Faces Criticism for Delays and Missing Interest on Tax Refunds
According to The Center Square Ohio, the Buckeye Institute is taking the city of Cleveland to court again after a local judge dismissed their class action lawsuit in July. The lawsuit filed earlier this year accuses Cleveland of not following its own rules on issuing tax refunds.
According to the city’s ordinances refunds must be processed within 90 days and if they are not interest should be added. This lawsuit affects people like Kate Wos from Strongsville and David Steffes from North Royalton. Both of them along with others had to wait much longer than 90 days for their refunds and the refunds they did receive were missing the required interest payments.
When it comes to tax returns, Cleveland has a clear policy: if the city is late, it has to pay interest. Interest rates are based on the federal funds rate plus an extra 5%. Kate Wos turned in her tax return for 2021 on March 12, 2023, but she didn’t get her money back until September, and there was no interest on it.
David Steffes had the same problem. So he could get his money back, his boss closed the office in Cleveland during the COVID-19 outbreak. He got his money back late in 2023, but it didn’t include interest or payment for the paid leave days he had asked for.
Buckeye Institute Demands Cleveland Enforce Tax Refund Policies and Pay Owed Interest
Jay R. Carson The Buckeye Institute’s top lawyer wants the court to make Cleveland follow its own tax rules. He wants the city to repay Wos, Steffes, and other people who were late with their payments with the interest they are owed. This court case shows that there are ongoing problems with how local governments handle their tax policies and that they need to follow their own rules.