MAHONING COUNTY TAXES Youngstown council members discuss bill on lottery winnings

The councilman's main concern is that the city doesn't miss a windfall.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- City council soon will see legislation making lottery proceeds taxable income, but only on larger winnings.
Councilman Clarence Boles, D-6th, said he would consult with colleagues and propose legislation with a floor of $5,000 or $10,000.
Several council members said Tuesday during a legislative committee meeting that they couldn't vote for Boles' original proposal.
He was suggesting the city add lottery winnings of $600 or more to its list of taxable income that residents must pay at 2.75 percent.
Many municipalities around Ohio collect income tax on lottery winnings exceeding $600. That amount and above is tracked by the state and federal governments for tax purposes. Proceeds below $600 are impossible to track, state lottery officials say.
Boles said he has no problem raising the start of collections beyond $600 if it will get the measure passed.
South Euclid's situation
His main concern is that the city doesn't miss a windfall like South Euclid did recently. The city was in line for $1.4 million when a resident won big. Like Youngstown, however, there was no lottery tax on the books. That left South Euclid empty-handed.
Niles council amended its tax code last week to collect its 1.5- percent income tax on lottery winnings exceeding $25,000.
Youngstown would make about $45,000 in a typical year by taxing lottery proceeds of its residents over $600, the state says. Boles said the city needs all the revenue it can get.
Artis Gillam Sr., D-1st, said he is against new taxing. He could live with a higher limit, however, such as $100,000.
"I think the little guy needs to keep his money," Gillam said.
Carol Rimedio-Righetti, D-4th, said she couldn't vote for the item at all for the moment. Many residents complained to her after they heard the proposal, she said. There have to be better ways to raise money, she said.
Some get nervous
City Council President James E. Fortune Sr. said any tweaking of the tax code to encompass more income makes people nervous.
Boles suggested lottery proceeds be earmarked for neighborhood improvements. He mentioned street repaving, housing demolition and sidewalk repair.
Council would have to amend the city's law that outlines how income tax is distributed to create the earmark, said Greg Morgione, an assistant law director.
Morgione said the law would apply to city residents, regardless of where a winning ticket is bought.
rgsmith@vindy.com