After a trial judge dismissed the case, the Buckeye Institute filed an appeal on behalf of Kate Wos, of Strongsville, and David Steffes, of North Royalton.

Wos and Steffes are part of a class action lawsuit saying the city failed to pay tax refunds within the 90-day requirement and therefore owed the two and all other nonresidents who field municipal income tax returns with the city and received their refund more than 90 days after filing their return interest.

“The trial court erred in dismissing Wos v. Cleveland. There simply are no administrative remedies to exhaust, and the law is clear,” said Jay R. Carson, senior litigator at The Buckeye Institute and an attorney representing Wos and Steffes. “Cleveland owes Ms. Wos, Mr. Steffes, and any other affected taxpayers, interest for failing to issue tax refunds within 90 days.”

The institute initially filed the lawsuit in March.

Cleveland’s law says when the city owes a tax refund, it is subject to interest at the rate of the federal funds rate of nearly 5% plus another 5% if it’s not paid within 90 days after a return is filed.

Ohio House Bill 110 allowed Ohioans to seek municipal income tax refunds for 2020 and 2021, and Wos filed her 2021 city return March 12, 2023, according to the lawsuit.

She received her refund six months later in September. It did not include any interest.

Steffes filed his return for 2021 for a refund when his employer, Stantec, closed its Cleveland office during the COVID-19 pandemic and was told to work from home.

The lawsuit says Steffes received his refund in late 2023, also without interest. The suit also says the city did not refund Steffes his paid vacation days.