CITY FINANCES Campbell seeks income tax payments

Residents who have won the Ohio Lottery are also subject to the tax.
By MARALINE KUBIK
VINDICATOR STAFF WRITER
CAMPBELL -- City coffers could get a boost of "several hundred thousand dollars" if residents who owe city income taxes pay up to avoid penalties, fines and jail time, according to the city's finance director.
Residents who have failed to file city income tax returns or who have filed the returns but failed to pay what they owe will avoid penalties and interest if they pay Sept. 13 through 30, John Leskovyansky said.
Under an aggressive plan to collect what is owed, he said, those who fail to file returns and pay what they owe by the end of the grace period will face fines of up to $500 and up to six months in jail for each offense, in addition to the interest and penalties.
Each year a resident fails to file a return or pay taxes owed is considered a separate offense.
In July, letters will be sent to everyone who hasn't filed a city income tax return in any one of the last 10 years as well as those who have filed returns but failed to pay what they owe, Leskovyansky said.
Ohio law allows the city to go back only up to 10 years, he added.
The letters will inform residents and, in some cases, former residents of the grace period and urge them to pay up by the end of September
Lottery winners
Residents who have won $5,000 or more playing the Ohio Lottery are also subject to the city income tax, Leskovyansky said, and will receive letters too.
He is in the process of obtaining winners' names from the Ohio Lottery Commission and cross-checking that information with tax returns.
Exactly how much the city stands to collect is uncertain.
Although Leskovyansky estimates that several hundred thousand dollars is owed, the amount that is actually collectible may be as little as $200,000 or $300,000. If residents have filed for bankruptcy protection or died and their estates closed, he said, the city may not be able to collect on those returns.
While the influx of funds will provide a significant boost to city finances, it won't be enough to bring Campbell out of fiscal emergency.
As of Dec. 31, 2003, the city's deficit was $1.4 million, Leskovyansky said. However, collection of income taxes owed combined with savings the city should experience as the result of layoffs implemented earlier this year should help move Campbell back into the black, he said.
A recovery plan for Campbell's fiscal crisis is yet to be developed. The governor will appoint a committee by July 10, Leskovyansky said, and the committee must submit a plan within 120 after that.
The committee will consist of three Campbell residents and/or business owners appointed from among applicants Mayor Jack Dill submitted to the state treasurer's office, a representative from the treasurer of state's office; a representative from the state director of budget and management's office; the mayor; and president of council.
The soonest the committee could meet, Leskovyansky added, will be mid-July.
kubik@vindy.com