By Gregory Korte
The Cincinnati Enquirer

Closson's manager Paul Darwish was already upset at the city of Cincinnati for not doing more to keep the 137-year-old upscale retailer downtown.

Then he got the bill for leaving.

An obscure consumer protection ordinance levies a 0.5 percent tax on the inventory of any company holding a going-out-of-business sale. Approximate cost to Closson's: $15,000.

The tax bill led Mayor Charlie Luken to introduce an ordinance Thursday waiving the fee for Closson's. And unless someone shows him a reason to keep it, Mr. Luken said, he wants to repeal the law.

"The whole notion that we were going to charge Closson's to go out of business is almost embarrassing," he said. "It just seems dumb. I mean, I guess we could make the going-out-of-business fee $2 million, and keep them here forever? It's almost like we're trying to give them an extra kick."

The 45-year-old city ordinance was intended to regulate going-out-of-business sales, some of which had become shams for unscrupulous retailers. Some sales would last months, and some businesses would go "out of business" several times a year.

The law requires companies advertising such sales to post a bond, allow inspections and pay a tax. Enforcement came through city tax collectors reading newspaper ads and by complaints from rival businesses.

"It's not a moneymaker. It was never intended to be a money-maker," said city Treasurer Daryl Cammerer.

City officials say the tax has never been a big revenue booster for the city. The 2000 revenue was $3,350, which dropped to just $539 in 2001. Last year, the figure was more than $5,000.

Based on a $3 million inventory, Closson's would have had to pay $15,000. But Mr. Cammerer said the actual fee would be based on the store's cost for the merchandise, not the sale price, so the actual fee may have been much lower.

In a blow to downtown retailing, Closson's announced that it would close the Race Street store March 31. It will maintain an art gallery in Hyde Park and a store in Montgomery, and perhaps open a new location in Norwood.

Mr. Darwish said he has no lingering hard feelings about the tax, which will be discussed by the finance committee next week.

"We reached out to the mayor's office, and the mayor was quite helpful and quite responsive in making it go away," he said.

E-mail gkorte@enquirer.com