Hamilton County Commissioners rescind sales tax hike on day petition to halt it succeeds

Show Caption Hide Caption What you need to know about the sales tax hike A big fight is brewing over the sales tax. Here's what you need to know.

A controversial sales tax hike will not take place after all.

Hamilton County commissioners on Wednesday voted 3-0 to rescind the 0.2 percentage point sales tax increase they approved June 18.

The commissioners pulled the sales tax increase on the same day a petition drive led by Republicans and anti-tax groups to halt the hike looked like it would succeed.

The move has far-reaching implications for a local congressional race of national importance. It also could mean major cuts for Hamilton County.

The sales tax drama started Wednesday morning on the steps of the Hamilton County Board of Elections in Norwood where anti-tax advocates declared victory.

With the financial backing of the local GOP, the advocates gathered 38,000 signatures and were well on their way to verifying the 23,600 needed to put the sales tax hike on the November ballot.

A few hours later, the county commissioners made the issue moot by rescinding the tax hike.

Some of the people who opposed the commissioners raising the tax also opposed them rescinding it.

Matthew Wahlert, a North College Hill councilman who led the petition effort, criticized the commissioners for pulling it after the petition was already gathered.

"In my mind, to take it off at this point, you're telling 38,000 folks your opinion doesn't matter," Wahlert said.

More: Here's what the sales tax hike in Hamilton County will cost you

More: Anti-sales tax effort costs $56,500; Democrats demand to know how the money was spent

The two Democratic commissioners, Todd Portune and Denise Driehaus, who voted for the tax increase, didn't cite the 38,000 people who signed the petition for why they pulled the sales tax increase.

Instead, it was a threat of a lawsuit from an anonymous person.

On Monday, the Cincinnati law firm, Katz, Teller, Brant and Hild, sent a letter to the county on behalf of an unnamed client accusing them of illegally passing the sales tax increase.

The attorney, Robert Pitcairn, Jr., threatened litigation if the tax hike went into effect. He wrote the sales tax required a unanimous vote since it was passed on an emergency basis.

The sales tax increase on June 18 passed 2-1 with the lone Republican commissioner, Chris Monzel, voting no.

The Hamilton County prosecutor's office disputed this interpretation and said the tax hike was legal since the tax didn't go into effect immediately.

But the commissioners rescinded the tax anyway.

"We need to move forward and we can't be tied up in court for two years on this question on the emergency clause in a resolution," Driehaus said.

Aftab Pureval the biggest winner?

Democratic congressional candidate Aftab Pureval might have been the biggest beneficiary of the county stopping the sales tax. A sales tax referendum would put another obstacle in front Pureval in his quest to unseat Rep. Steve Chabot, R-Westwood in the heavily Republican 1st Congressional District.

Republicans hoped having the sales tax increase on the ballot would drive more conservative voters to the polls to help Chabot. In a district already heavily Republican, that could make the hill Pureval must climb that much higher.

Now, he doesn't have to worry about a sales tax referendum.

Did Pureval and/or the Democrats apply pressure to get the commissioners to pull the tax increase? They aren't saying.

But connections between Pureval and the law firm that threatened the lawsuit raise questions.

The law firm, Katz Teller, has contributed $8,100 to Pureval's campaign, according to Federal Election Commission records as reported by the Center for Responsive Politics.

Pitcairn, Jr., who wrote the letter to the county, contributed $5,400 to Pureval's campaign.

Pureval's campaign treasurer is Evan Nolan. An attorney named Evan Nolan is also listed on Katz, Teller's roster.

Both representatives with Katz Teller and Pureval's campaign wouldn't comment.

Portune didn't take questions after Wednesday's meeting citing he had another engagement.

Driehaus said the decision didn't have anything to do with Pureval's campaign.

"I've heard conversation bubbling up different places, but no, this action was to make sure we can provide the necessary revenue for this county moving forward," Driehaus said.

Big cuts ahead for Hamilton County

Regardless of the political motivations, Hamilton County will face some tough budget decisions ahead.

County commissioners cited a $28 million deficit projected for next year as the reason why they needed to raise taxes.

Without the additional tax revenue, they'll have to find a way to make $28 million in cuts. That could mean a 17 percent across the board cut, officials said on Wednesday.

"This is the reason we took direct action," Portune said.

Where the county and department heads, such as the sheriff, would cut hasn't been determined.

Commissioners didn't rule out the possibility of a tax increase next year. Monzel proposed a motion requiring any sales tax increase in the future to go before the voters and have a sunset provision. Portune and Driehaus declined to take the measure up.

Will another sales tax increase be proposed next year?

"I do not know the answer to that question," Driehaus said. "That's the conversation we need to start having."