Appeal filed in suit against Cleveland’s failure to pay interest on tax returns – Washington Examiner
An appeal has been filed by two residents from northeast Ohio, Kate Wos and David Steffes, against the city of Cleveland regarding the failure to pay interest on their tax refunds. The case was dismissed by a trial judge, leading the Buckeye Institute to intervene and file the appeal on behalf of the plaintiffs. They claim that Cleveland did not return tax refunds within the legally mandated 90-day period, thus incurring an obligation to pay interest on those refunds to Wos, Steffes, and other nonresidents who filed municipal income tax returns. The attorney representing the plaintiffs argued that the trial court made an error in dismissing the case, emphasizing that there are no administrative remedies that need to be exhausted and that the law clearly supports their claim for interest due to the delays in refund processing.
Appeal filed in suit against Cleveland’s failure to pay interest on tax returns
(The Center Square) – Two northeast Ohio residents continue to argue for interest on tax refunds they say Cleveland owes them following the COVID-19 pandemic.
After a trial judge dismissed the case, the Buckeye Institute filed an appeal on behalf of Kate Wos, of Strongsville, and David Steffes, of North Royalton.
Wos and Steffes are part of a class action lawsuit saying the city failed to pay tax refunds within the 90-day requirement and therefore owed the two and all other nonresidents who field municipal income tax returns with the city and received their refund more than 90 days after filing their return interest.
“The trial court erred in dismissing Wos v. Cleveland. There simply are no administrative remedies to exhaust, and the law is clear,” said Jay R. Carson, senior litigator at The Buckeye Institute and an attorney representing Wos and Steffes. “Cleveland owes Ms. Wos, Mr. Steffes, and any other affected taxpayers, interest for failing to issue tax refunds within 90 days.”
The institute initially filed the lawsuit in March.
Cleveland’s law says when the city owes a tax refund, it is subject to interest at the rate of the federal funds rate of nearly 5% plus another 5% if it’s not paid within 90 days after a return is filed.
Ohio House Bill 110 allowed Ohioans to seek municipal income tax refunds for 2020 and 2021, and Wos filed her 2021 city return March 12, 2023, according to the lawsuit.
She received her refund six months later in September. It did not include any interest.
Steffes filed his return for 2021 for a refund when his employer, Stantec, closed its Cleveland office during the COVID-19 pandemic and was told to work from home.
The lawsuit says Steffes received his refund in late 2023, also without interest. The suit also says the city did not refund Steffes his paid vacation days.
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