The Buckeye Institute has filed a notice of appeal in the case Wos v. Cleveland, a class action lawsuit representing nonresidents of Cleveland who experienced delays in receiving their municipal income tax refunds. The appeal will be heard by Ohio’s Eighth District Court of Appeals.
Jay R. Carson, senior litigator at The Buckeye Institute and attorney for the plaintiffs, stated, "The Buckeye Institute has called on the court to order the city of Cleveland to follow its own city ordinances and pay Ms. Wos, Mr. Steffes, and anyone else affected the interest Cleveland owes them because the city failed to issue their tax refund within 90 days."
The Buckeye Institute plans to file a full brief with Ohio’s Eighth District Court of Appeals at a date yet to be determined by the court.
According to Cleveland's city ordinances, tax refunds are subject to interest if not paid within 90 days after filing. This interest is calculated based on the federal funds rate plus an additional five percent.
Kate Wos of Strongsville filed her 2021 municipal tax return with Cleveland on March 12, 2023, following the passage of Ohio House Bill 110 which allowed residents to seek refunds for 2021 and 2022. After waiting over six months, she received her refund on September 21, 2023; however, it did not include interest for the delay or compensation for her paid vacation days.
Similarly, Mr. Steffes from North Royalton faced challenges in obtaining his refund for time spent working from home during the pandemic when his employer's office was closed. Despite initially being denied and facing unreasonable verification demands from the city, he eventually received his refund late in 2023 without interest or compensation for paid vacation days.
For further updates on this case, visit BuckeyeInstitute.org/WosvCleveland.