Salespeople who spend more than 12 days a year in Warren are required to pay the city's 2 percent

Salespeople who spend more than 12 days a year in Warren are required to pay the city's 2 percent income tax.
By PEGGY SINKOVICH
and STEPHEN SIFF
VINDICATOR TRUMBULL STAFF
WARREN -- Some traveling salespeople who sold Trumbull County $17,000 worth of air freshener last year and stocked the jail with 100 rolls of toilet paper a day are suspected of not having reported their earnings to the Warren City Income Tax Department.
Moreover, none of the six companies targeted in investigations of the Trumbull County Purchasing Department has been paying city tax, as required by law.
As well as doing business at county offices within the city limits, three of the companies have been doing business with the city itself, city auditor's records say. All could have some explaining to do.
An investigator in the income tax department has been assigned to look into why the companies have not been paying taxes, said Tom Gaffney, tax administrator.
Typically, companies are held liable for the last three years they missed, he said.
"If they read the story and then call us and say they want to pay, then we will work out something with them," said Gregory Hicks, city law director.
"If they make no contact with us and we contact them and they still don't pay, then we may attach a penalty and interest."
Hicks said failure to pay after a period of time could mean criminal charges.
What city law requires
City ordinances require salespeople who spend more than 12 days a year in Warren to pay the city's 2 percent income tax on salary and commissions earned here, Gaffney said.
The 2 percent is also due on the net profit out-of-town businesses reap from sales here.
Traveling salespeople from other businesses routinely comply with city law.
"A lot of salesmen do come in here all the time," Gaffney said. "They are in here every day."
The attorney who represents Kinzua, one of the companies under investigation for its sales to Trumbull County, said he doesn't think sales representatives have to pay city income tax in Warren.
"I do not believe it is an issue," said Bill Wulinger. "If a professional sports team plays in another city they don't have to pay money in that city."
Kinzua has been served with a subpoena for business records relating to its sales to the Trumbull County Maintenance Department and the county jail, he said. The company has done $234,000 worth of business with Trumbull County since 1995 and $408,000 worth of business with the city of Warren since 1996.
If a sales representative is paying income taxes in another city, he or she may not owe taxes to Warren, Hicks said. However, the city has no way of knowing what taxes are owed if the companies don't even register.
"There are tons of people who do it," said John Taylor, city treasurer. "It is hard to keep track of them."
Phone calls to State Chemical Manufacturing Co. and Envirochemical, both of Cleveland, were not returned.
State Chemical has done $75,000 worth of business with Trumbull County since 1995, and $55,000 with the city of Warren since 1996.
Envirochemical has done $973,000 with the county since 1995, and $70,000 with the city since 1996.
Donald Donofrio, owner of another company under investigation, Central Service and Supply, said he wasn't aware employees were supposed to pay income tax on their earnings in Warren.
"I'll call my accountant and get my records together and take care of it," Donofrio said.
The Brookfield-based company has done $113,000 worth of business with the county since 2000. Donofrio would not comment on whether his company has been served with a subpoena.
Companies subpoenaed
Lid Chem and Tri-County Supplies, two related companies owned by Linda Mariano of Canfield, have been served with subpoenas, said the companies' lawyer, J. Jerry Ingram.
He would not comment on why the companies have not registered to Warren's income tax.
Lid Chem has done $657,000 worth of business with Trumbull County since 1997.
Tri-County Supplies has done $18,000 worth of business since 2001.
The Trumbull County Prosecutor's Office and the Ohio Bureau of Criminal Identification and Investigation have been investigating the companies since a series of Vindicator articles beginning the first week of August exposed a pattern of excessive spending and lax record keeping at the county maintenance department and jail.