OHIO Retailers seek lower taxes, but schools are hurting too

One chain store said the schools should look at the big picture.
CLEVELAND (AP) -- Some retailers say a slumping economy means their stores are worth less, so they should pay lower property taxes.
But the reductions come at a tough time for school districts, many of which already face budget cuts.
Suburban Strongsville will lose $444,202 this year and next year because taxes were cut for four department stores at Westfield Shoppingtown SouthPark Mall.
"If the city were not still growing with new development, we would be killed by the cuts," Strongsville Treasurer David Mattingly said.
Adding to the loss, the district paid lawyers and appraisers $222,200 to fight tax challenges.
"These are the largest requests for property value decreases I've seen in 30 years" of helping schools oppose them, said lawyer Dan Kolick, who represents Strongsville schools.
Here's the contention
It's not just suburban retailers. Owners of downtown hotels, office buildings and apartment complexes say their properties are worth less, and they also want to pay lower taxes. That can mean less money for local governments, especially school districts.
If all were approved, reductions requested by downtown Cleveland businesses would mean a loss of $10 million in property tax revenue, and the school system plans to fight most of them. It already is looking at hundreds of job cuts.
"If we have the tax dollars right now, we can save jobs rights now," said Erbert Johnson, the district's chief financial officer.
J.C. Penney was among the stores challenging its Strongsville tax bill, and chain spokeswoman Christi Smith said schools should consider the big picture. The company, with 45 stores in Ohio, contributes $7 million statewide to the property tax base, she said.
School officials say property taxes are vital to them because 60 percent of that money goes to schools.
"Cities have income tax. Counties have sales tax, but 70 percent of our budget comes from local property taxes," said Rob Matson, treasurer of schools in North Olmsted.
Here's the argument
Department stores contend that when sales decline, their properties lose value.
School lawyers argue that despite decreased sales, department stores retain high value because other entities might be interested in the property.
Kolick has taken his argument against using slumping sales as a basis for determining property value to the Ohio Supreme Court, where a ruling is pending.
Akron schools treasurer Jack Pierson said lowered values might be fair to businesses but they are "a tragic loss to school districts. School funding is eroding from nearly every source."
North Olmsted schools could lose nearly $1.5 million during the current three-year tax cycle, and Akron schools could drop $1 million with successful challenges.