MAHONING COUNTY Judge tosses bed-tax lawsuit

The county will try to get back tax dollars being held by the visitors bureau.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- A Columbus judge has dismissed a lawsuit filed last year by the Youngstown/Mahoning County Convention and Visitors Bureau against Mahoning County commissioners.
Now commissioners will file their own lawsuit, in Mahoning County Common Pleas Court, trying to recover money being held by the CVB.
The visitors bureau sued in Franklin County Common Pleas Court to block commissioners from using revenue from a county bed tax to help operate the Youngstown/Warren Regional Airport. It filed the suit in Columbus because Gov. Bob Taft also was named as a defendant.
The suit challenged the constitutionality of a new law that allowed commissioners to take bed-tax revenue away from the CVB and use it instead to help fund the Youngstown/Warren Regional Airport.
Reason for dismissal
Judge Richard Sheward of the Franklin County court ruled this week that his court lacked legal standing to hear the matter because it's a Mahoning County issue, and dismissed the case.
Prosecutor Paul Gains credited his staff for getting the matter dismissed, and said he'll next turn his attention to getting back tax money that the CVB is holding.
"I don't know if we'll be successful, but we're going to try," Gains said. He said there is no legal precedent for such an action.
Atty. Kevin McDermott of Columbus, who represents the CVB, said he's not sure whether the bureau will appeal Judge Sheward's ruling. He agreed with Gains that the matter is breaking legal ground.
"I think it's fair to say that there is still a lot more to be decided in this whole matter," McDermott said. "This is probably the first case in Ohio to raise these issues."
Commissioners imposed a 3 percent lodging tax, known as a bed tax, in 1986. All of its revenue was handed over to the CVB, which was created the same year to oversee travel and tourism in the county. The tax is paid by everyone who rents a hotel or motel room in the county.
In October 2003, commissioners voted to stop giving bed-tax revenue to the CVB. Now, 2 percent goes toward operation of the airport, which is in Vienna Township, and the remaining 1 percent goes to a new visitors bureau made up of county officials.
The old visitors bureau had about $600,000 in its accounts when commissioners stopped funding it. Auditor George Tablack has said that since it's no longer recognized as a publicly funded agency, it should not be allowed to retain those tax dollars. He also has resisted paying over bed-tax revenue that was collected in the months just before the funding switch took place.
Separate complaint
The CVB has said it's entitled to receive any revenue it was due before October, when commissioners redirected the funding. The CVB filed a separate complaint against Tablack in the Ohio Supreme Court, asking that he be forced to hand over the money. That matter is pending.
Tablack has said he's concerned that if action isn't taken soon to freeze the CVB's assets, the money will be spent and the point will be moot. CVB officials have said they're using the money to pay legal expenses for the lawsuits. It also spends money to market the area.