The resolution, presented by 4th District Commissioner J. Adam Lowe, states the county will give the disputed funds to the city of Cleveland and will not appeal. The Commission plans to vote on the resolution Monday.
“I just think we need to lay this thing to rest,” Lowe said. “That money is better served at work in the community (than sitting in a trust).”
On July 1, Chancery Court Judge Jerri Bryant ruled in favor of the city of Cleveland. Bryant said in the summary judgment that the city did not have to share revenue from the 2009 1/2-cent sales tax increase. The issue was heard in Chancery Court on April 21, 2011.
How revenue from the 2009 increase should be distributed became a disputed topic between the two governments because the increases were passed at separate times. The city passed the sales tax increase on March 3, 2009. The county did not pass an increase until May 14, 2009.
Nearly $850,000 has been collected, and held in trust since the dispute began. The ruling applies to the tax collected from the 1/2 cent increase up until June 30, 2010. Any sales tax collected from the 2009 1/2-cent sales tax increase after that date will be given to the area where the sale was made. If the tax is collected in the city, then it will go to the city. If it is collected in the county, then it will go to the county. Agreements between the two governments regarding sales tax distribution made in 1967 and 1980 were not changed by the court decision.
Money from the 1/2-cent sales tax increase was allocated for capital projects when the increases were passed.
The Cleveland City Council voted Monday to wait to take action on the decision until it saw what the Commission would do. The Council will address the issue again at the July 25 meeting.