Thursday, 16 June 2005
Wanna bet? says Sandusky; state law doesn't recognize the PUCO exemption.
By BRANDI BARHITE
brandibarhite@sanduskyregister.com
SANDUSKY - The Jet Express ferry service says it shouldn't be required to pay the city's newly revised admission tax.
Sandusky Finance Director Ed Widman said Wednesday that the Jet Express is saying that because the company is regulated by the Public Utilities Commission of Ohio, it is exempt from the tax.
However, Law Director Don Icsman said the Ohio Revised Code does not prohibit a municipality from levying an admission tax against a PUCO-regulated company.
"The city surveyed 10 other cities with admission tax ordinances and did not find any city with a PUCO exemption," Icsman wrote in a memorandum to the commissioners about the exemption in April.
Jet Express officials did not return calls for comment Wednesday. The company's spokesman also did not return a call. The Jet Express began its Sandusky service from the Jackson Street Pier in May.
Sandusky City Commission voted 4-3 on Monday to expand the city's 3 percent admission tax to include campgrounds and ferries.
The new language of the city ordinance, which goes into effect in January, strikes the exemption when it constitutes a toll or charge regulated by the PUCO, which Icsman told commissioners "removes any possible confusion and makes the city's ordinance consistent with the other cities surveyed."
A PUCO official had no comment on the disagreement on Wednesday, referring questions to the Ohio Department of Taxation. Thetax department also declined to comment, but is looking into the city's revised ordinance.
Widman said Wednesday that his office will be contacting ferry officials to discuss the disagreement.
Widman estimates that boat excursions will bring in $12,500 in admission taxes.
Also, clearing up any confusion, Widman said Wednesday that Cedar Point will not be required to pay an additional admission tax on the park's miniature golf course.
Miniature golf courses are subject to the 3 percent tax under the revised ordinance.
Widman said the legislation states that when a tax is imposed to the entry of one place, no further tax is imposed to the entry of another if the admission is less.
Also, the city cannot charge an admission tax when a place allows people to go into a facility without paying. Widman said people can enter Cedar Point's mini-golf course without paying to observe other players, for example.
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