Wednesday, May 10, 2000
Tax case fallout causes worries
By Janice Morse
The Cincinnati Enquirer
HAMILTON — A lawsuit that Butler County Prosecutor John F. Holcomb filed last week against the county auditor appears to have become moot, but some officials are worried about its fallout.
The lawsuit alleged Auditor Kay Rogers improperly “forgave” nearly $10,000 in real estate tax penalties and interest for developer Irv Tessler last year.
County Treasurer Mary C. Law's office ordered this “remittance” after consulting with Ms. Rogers' office — one of hundreds of remittances the county processes each year, officials said.
On Tuesday, a check from Mr. Tessler was delivered to Mrs. Law's office to cover the disputed amount plus interest. Mr. Tessler declined to comment. Mr. Holcomb said he would dismiss the suit today, but he also will call for an independent audit of the remittances to see how much “hanky-panky” has been going on.
Meanwhile, other officials say the case's ripple effects could touch landowners, treasurers and auditors throughout the state.
While researching Mr. Tessler's situation, Butler County officials discovered his remittance hadn't been approved by the state tax commissioner — although a 1982 change in state law requires it, said Randy Groves, one of Ms. Rogers' chief deputies.
That approval also was lacking in hundreds of similar cases, he said, adding: “We weren't treating Mr. Tessler any differently. We simply were adhering to past practices. We were unaware that all of these remittances needed the tax commissioner's approval.”
Mr. Groves said his office learned that several other counties also apparently are failing to obtain the required approvals.
“We're concerned about the deluge that the tax commissioner could be getting if this is enforced,” he said, adding that Ms. Rogers planned to meet today with the tax commissioner's office to discuss those concerns.
As a result of the lawsuit, Butler County now will send all remittance requests to the tax commissioner, said Carole Mosketti, Mrs. Law's administrative assistant. Mrs. Mosketti noted that past cases have taken eight months for the tax commissioner to finish. She's concerned landowners whose remittances are denied might face additional interest charges while the tax commissioner wades through the backlog of cases.
Ohio law says remittances of tax penalties are allowed for specific reasons, such as lost or misdirected mail, or clerical errors, Mrs. Mosketti explained. She said she is confident all the local cases met the legal criteria.
Gary Gudmundson, spokesman for the tax commissioner, said the office's annual caseload has generally hovered around 3,500 to 4,000 cases. But last year, about 30 employees handled 6,000 remittance cases. Clear-cut cases can be handled in days, he said, but more complex cases may take months.
Steve Kemme contributed to this story.
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