Judge will rule on bed-tax suit

Since Taft was named as a defendant, the suit was filed in Franklin County.
By MICHELE C. HLADIK
VINDICATOR CORRESPONDENT
COLUMBUS -- Judge Richard Sheward of Franklin County Common Pleas Court is expected to decide Friday if Mahoning County commissioners can continue to redirect the county's bed tax in the face of a lawsuit.
The suit, which challenges the constitutionality of provisions in the state budget which allow counties to redirect certain funds, was filed in Franklin County because Gov. Bob Taft is named as a defendant.
"We still have serious issues to concern ourselves with," Judge Sheward said before hearing less than two hours of testimony from Tom Lyden, director of the Youngstown-Mahoning County Convention and Visitors Bureau, and Mahoning County Administrator Gary Kubic.
Lawsuit filed
The bureau filed the lawsuit against Taft and the Mahoning County commissioners last month after commissioners voted to redirect the county's 3-percent bed tax.
The tax, charged on all hotel and motel room rentals since 1987, brings in an estimated $450,000 annually to operate the bureau which promotes travel and tourism, but commissioners voted to use 2 percent of the tax to fund the Youngstown-Warren Regional Airport.
Linette Stratford, an assistant Mahoning County prosecutor, told the judge the county is primarily concerned that the 2 percent continues to go to the airport.
"If we don't have an airport, we don't have an Air Force base," she said, adding losing the air base could cost the county 2,000 jobs.
According to Kubic, the funds are needed to keep the airport operating by assisting with budget shortfalls and providing revenue. He said if the airport closes, the county will need to repay its half of nearly $38.7 million in federal aid.
Needs the tax
Lyden said the bureau needs the bed tax for its survival as well.
He said travel and tourism is the fourth-largest industry in the county and the bureau plays a large role in assisting that industry. He added that 85 percent of people visiting the area use the bureau for directions or information.
According to Lyden, the health and vitality of the hotel business in the area depends on the bureau.
"We get a lot done with our money," Lyden said, adding the bed tax is the sole funding source for the bureau.
Stratford said the bureau's balance of more than $600,000 would sustain it for more than a year.
Lyden agreed, but said the bureau shouldn't need to use the money to operate.
Judge Sheward questioned the need to establish a new visitors bureau when the county already has one.
According to Kubic, the public funds should be under the county's control. "We wanted to increase and improve our accountability," he said.
Columbus attorney Kevin McDermott questioned whether the county knew of legislative efforts to the add provisions to state's budget bill, which was approved in June.
Lyden said he didn't know of the effort and Kubic said he was simply asked by the county commissioners to get a copy of the law.
The lawsuit also contends the budget bill is unfair because it doesn't apply to all counties and seems to favor Mahoning County.