Appeal planned in Cleveland tax refund class action lawsuit

(The Center Square) – A policy group continues to push forward with a class action lawsuit claiming the city of Cleveland failed to pay tax refunds within a 90-day requirement.

The Buckeye Institute recently filed a notice to appeal with Ohio’s 8th District Court of Appeals after a Cuyahoga County judge dismissed the case in July.

The institute initially filed the lawsuit in March on behalf of Kate Wos of Strongsville and David Steffes of North Royalton, as well as all nonresidents of Cleveland who filed a city income tax return and received their refund more than 90 days after filing.

“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,” said Jay R. Carson, senior litigator at The Buckeye Institute.

Cleveland’s law says that 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.