Akron Illegally Taxed Settlement Money, Ohio Appeals Court Told

Akron unlawfully assessed municipal income tax on a non-resident’s settlement with her former employer based in the city, the worker told an Ohio appeals court.

Karen Kresevic came to a settlement with Akron City Hospital over her wrongful termination claim—2.5% of the settlement funds were withheld by the employer and remitted to the city, which denied a tax refund to her. She argued in an appellate brief that Akron didn’t have the authority to tax those funds because they weren’t tied to work performed in the city, as she was no longer employed in Akron once the settlement was reached. ...