Stop Sales Tax Evasion: Why Lawmakers Must Take Action Now!

Once again, under the cover of darkness, Ohio lawmakers are up to their old tricks. They’re attempting to push through convoluted policy changes by stuffing them into “Christmas tree bills”—a fitting label for these legislative monstrosities, as they’re adorned with a hodgepodge of unrelated amendments that serve as little more than a wishlist for lawmakers. One particularly egregious amendment linked to an omnibus bill is a sales tax exemption for improvements to Paycor Stadium, funded by the Cincinnati Bengals.

Talk about a holiday gift—just not for the average taxpayer.

For most everyday citizens, this proposal feels more like receiving a lump of coal. The benefits of this sales tax loophole primarily flow to those at the top of the economic ladder, leaving hard-working taxpayers in the dust.

As state Rep. Bill Seitz of Green Township cheerfully proclaimed, “Merry Christmas!” about the proposal, he practically dared anyone to vote against it. But it begs the question—who’s really in the wrong here? After 24 long years in the Ohio House, Seitz’s farewell gift to his constituents is a glaring reminder that sales tax avoidance is simply unacceptable.

According to recent reports, this legislation opens the door for any major professional sports team in Ohio to apply for similar exemptions for stadium upgrades, a move that could translate into lost sales tax revenue in the tens of millions for counties like Hamilton, Franklin, and Cuyahoga. Can you believe it? Hamilton County stands to lose about $10 million in sales tax revenue thanks to these supposed “improvements” that the Bengals have promised. It’s like they’ve hit the jackpot without even buying a ticket.

And let’s not forget Hamilton County commissioners, who were planning to negotiate similar tax incentives as part of their lease talks with the Bengals. Instead, they were blindsided when the Brown family and their attorneys opted to go directly to the legislature, leaving the county negotiating in vain.

Seitz dismissed the county’s negotiation tactics as “kabuki theater,” but really, this whole charade is nothing short of a theatrical tragedy for everyday taxpayers who are getting the short end of the stick.

Remember when the Bengals advocated for a sales tax to fund their stadium? Now that it’s time for them to contribute to its upkeep, suddenly, sales taxes are a no-go. They were all in favor of taxes when it suited their needs, but now? Not so much.

When will Hamilton County commissioners and state lawmakers finally step up for the people who actually pay sales taxes? It’s crucial to recognize that the burden of these taxes often weighs heaviest on those at the lower end of the socioeconomic scale.

This situation is a prime example of how sports franchises are shirking their tax responsibilities while the rest of us foot the bill. It’s no wonder why our city has gained a reputation for having one of the worst lease agreements in the country.

The “sales tax for you, but not for me” mentality isn’t just a local problem—it’s spreading.

Take The Port, for example, a quasi-governmental entity funded by your tax dollars. They have been deep in this tax avoidance game, recently taking over the Carew Tower and leasing it back to the original owner—avoiding sales taxes in the process. They’ve also engaged in similar schemes with the FCC stadium, leading to an estimated $4.5 to $5 million in unrealized sales tax revenue. The list goes on.

Why do these tax dodges keep winning while the rest of us are left to pick up the pieces?

What’s missing is the willingness of our elected leaders to champion fairness and equity. They should reject legislative gimmicks that offer safe havens for those already well-equipped to shoulder their share of the tax burden.

These privileged entities reap the benefits of public services—like first responders and infrastructure maintenance—without contributing their fair share to funding them. It’s high time our representatives make it clear that everyone needs to pitch in.

Elected officials must take a stand and say “no” to these tax-evading schemes. They need to remind those with their hands out that taxes are essential for maintaining government services that everyone benefits from. This social contract needs to be reinforced, even if it requires some tough conversations.

The shelf life of these sales tax loopholes and tax abatements has long expired. It’s time for businesses that want to thrive here to understand that taxes are necessary to sustain essential government functions.

So what’s next? With Seitz term-limited and stepping down, that source of tax avoidance has been neutralized. The county commissioners remain. It’s time for them to end the charade orchestrated by The Port and misguided state legislation. Will they choose to side with the tax dodgers or stand up for the taxpayers who are bearing the full burden?

Only time will tell.

A concerned Ohio resident.