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.
Cleveland’s policy on tax refunds is clear if the city is late in issuing a refund it must pay interest. The interest rate is based on the federal funds rate plus an additional 5%. Kate Wos filed her 2021 tax return on March 12, 2023 but did not get her refund until September and it did not include any interest. David Steffes faced a similar issue. His employer shut down its Cleveland office during the COVID-19 pandemic which led him to file for a refund. He received his refund late in 2023 but it also lacked interest and did not include compensation for paid vacation days he had requested back.
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$1.4 Million in Interest Owed: Buckeye Institute Takes Cleveland to Court Again Over Tax Refund Delays! (PHOTO: LinkedIn)
Buckeye Institute Demands Cleveland Enforce Tax Refund Policies and Pay Owed Interest
Jay R. Carson a senior lawyer at the Buckeye Institute is pushing for the court to make Cleveland follow its own tax rules. He wants the city to pay back the interest owed to Wos, Steffes, and other people who were affected by these delays. This legal battle highlights the ongoing issues with how local governments manage their tax policies and the need for them to stick to their own regulations.
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