MAHONING COUNTY City council says no to tax on lottery wins

A lottery tax would have hurt city residents, a councilwoman says.
By PETER H. MILLIKEN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- The city will keep its hands off lottery winnings.
City council defeated by a 6-1 vote a proposal by Councilman Clarence Boles, D-6th, to impose the city's 2 3/4 percent income tax on lottery winnings, with only Boles voting in favor.
Another proposal to tax winnings but specifically stating it would be effective Jan. 1, 2005, with the tax applying only to winnings above $25,000, failed by a 4-3 margin Wednesday.
Those in favor of that proposal were Councilmen Boles, Richard Atkinson, R-3rd; and Artis Gilliam, D-1st. Against were Council Members Rufus Hudson, D-2nd; Mark Memmer, D-7th; Mike Rapovy, D-5th; and Carol Rimedio-Righetti, D-4th.
Boles said city officials in South Euclid lament that their city ordinances didn't allow them to impose their city income tax on a recent $162 million lottery winner residing there. South Euclid missed a $1.4 million tax windfall from that, which would have resulted in the recall of 20 laid off city employees, Boles said.
"I just don't want to miss the opportunity," for Youngstown, Boles said.
Touted benefits
Even if nobody here wins $100 million or more, Boles said, his proposal could bring the city $40,000 to $60,000 a year. "That's probably five or six homes on the demolition list," he said. Taxing lottery winnings would generate "revenue that we so desperately need right now," he added.
However, Righetti said constituents who've spoken to her are overwhelmingly opposed to having city income tax, which applies to wages earned in the city, imposed on lottery winnings.
Such winnings are already subject to federal and state taxes, she noted. "We're hurting city residents," if city tax is added, she said. "If someone wins the lottery, they should be able to keep that," she added.
"There are other ways to make money in this city," she said, adding that the city could consider raising vendor's licenses and other licensing and registration fees to enhance revenues.