Uhrichsville, Dennison councils to vote on agreement that would end income tax dispute
UHRICHSVILLE ‒ Uhrichsville City Council and Dennison Village Council will meet Thursday to vote on a settlement agreement that would bring to an end an ongoing lawsuit over income taxes paid by Claymont High School employees.
"I recommend that council support the settlement. I said from the beginning, this was nonsense. The only ones that benefitted were the attorneys," said Uhrichsville Mayor Jim Zucal.
Added Dennison Mayor Greg DiDonato, "It's a new day. We all need to move on. The tragic thing about this whole thing is that well over $100,000 on both sides went into the pockets of lawyers, for what? We're fighting over $19,000 a year."
More: on lawsuit Dennison-Uhrichsville lawsuit over income taxes appears headed for resolution
Dennison filed suit in Tuscarawas County Common Pleas Court against Uhrichsville in 2022, alleging that Uhrichsville had breached an agreement to share income taxes collected from high school employees.
Until 2020, Uhrichsville had been paying 37% of city income taxes collected from high school employees to Dennison under terms of a 1998 agreement between the two communities.
An agreement to settle the dispute was reached during a mediation conference on Jan. 25. Attending the conference were attorney Kevin Lundholm, representing Dennison, Dennison Village Solicitor Patrick Williams and Uhrichsville Law Director Jeffrey Merklin.
Terms of the agreement
DiDonato provided the terms of the agreement. The income tax money will continue to be divided between the two communities based on population. The percentage will be adjusted to 35% for Dennison and 65% for Uhrichsville, based on current population figures. The percentage will be adjusted after every federal census.
There is no time limit on the agreement. However, it could be changed if any court ruling determines these kinds of agreement are illegal or if the high school ceases to operate.
DiDonato said Dennison is owed its share of income tax money collected since 2021. That amounts to around $60,000.
The village has spent around $20,000 on legal fees, he noted.
Zucal said he is glad the lawsuit will be over. "I just think about how much paving we could have done for that kind of money."
If both councils approve the agreement, a dismissal entry for the suit will be filed in Tuscarawas County Common Pleas Court by Feb. 28.
Reach Jon at 330-364-8415 or at jon.baker@timesreporter.com.
This article originally appeared on The Times-Reporter: Uhrichsville, Dennison councils to vote on settlement to end tax suit
