WARREN 2 named in probe paying city taxes

Tax information is proprietary under the law.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- At least two of the companies that are being investigated as part of a Trumbull County purchasing probe are in compliance with city income tax laws, the income tax administrator says.
If Kinzua and Central Service and Supplies owed city income tax, they have paid them since the investigation started, said Tom Gaffney.
Because it's considered proprietary information under the law, Gaffney and Treasurer John Taylor said they can't discuss how much a company earns in the city or how much, if any, a company pays in income tax.
Information from two more companies, State Chemical Manufacturing Co. and Envirochemical, both of the Cleveland area, is still being gathered, he said, adding that the investigation should wrap up soon.
The department has encountered difficulty getting information from Lid Chem and Tri-County Supplies, Gaffney said.
The other companies have been cooperative, he said.
Looked into tax paying
After the Trumbull County prosecutor's office started an investigation last year into excessive spending and high-volume ordering of janitorial supplies at the Trumbull County maintenance department, the city income tax department starting looking into why the companies hadn't been paying city tax.
The six companies were sent business questionnaires asking where the business is located, the type of business, how much time salespeople spend in the city and other information.
Barry Jacobson, an owner of one of the companies, Envirochemical, pleaded guilty last month to charges of paying bribes so the county's maintenance department director would buy janitorial products from Jacobson's company at inflated prices. Tony Delmont, the maintenance director, and Delmont's wife also have been charged.
Companies that do business with the city are required to register with the city income tax department. An ordinance that took effect in early 2002 requires 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.
The tax also is due on the net profit out-of-town businesses get from sales in the city.
Gaffney said the investigation targeted the companies rather than individual salespeople.
He said the investigation found that the two companies weren't aware of the requirement to register and they have since established the required accounts.
denise.dick@vindy.com