The Buckeye Institute has taken legal action against the City of Cleveland by filing a class action lawsuit on behalf of affected taxpayers who experienced delays in receiving their tax refunds. The lawsuit, titled Wos v. Cleveland, was filed in the Cuyahoga County Court of Common Pleas and demands the city to pay interest owed to the taxpayers due to the delayed refunds.
According to Jay R. Carson, senior litigator at The Buckeye Institute, "Citizens should not be forced to go to court to get the city to follow its own laws." The lawsuit challenges Cleveland to adhere to its city ordinances, which stipulate that tax refunds not issued within 90 days are subject to interest. The institute's clients, including Kate Wos of Strongsville and David Steffes of North Royalton, were among those affected by the delayed refunds.
The city ordinances of Cleveland specify that tax refunds are subject to interest if not paid within 90 days after the taxpayer files their return. Kate Wos, after filing her 2021 municipal tax return with Cleveland in March 2023, experienced a delay of more than six months before receiving her refund in September 2023, without the accrued interest for the delay and unrefunded paid vacation days.
Similarly, David Steffes faced obstacles in obtaining his tax refund from Cleveland for the year 2021. Despite his employer's office closure and remote work arrangement during the pandemic, the city demanded unreasonable verification before issuing the refund. Mr. Steffes eventually received his refund in late 2023, also lacking the interest for the delay and reimbursement for his paid vacation days.
The lawsuit aims to hold Cleveland accountable for failing to fulfill its obligations to taxpayers under its own ordinances regarding timely tax refunds. The Buckeye Institute's legal action sheds light on the challenges faced by individuals like Kate Wos and David Steffes, seeking fair treatment and adherence to the law in matters of municipal tax refunds.