FIRST REPORT: Hamilton sued by township over annexations
“The mediator said based on what the Department of Taxation has indicated to Hamilton they are withdrawing from the mediation,” Sheets told the Journal-News.
The city of Hamilton did not return requests for comment.
Over the years as Hamilton has annexed land from St. Clair, Fairfield, Hanover and Ross townships, the city did not get county commissioner approval for boundary adjustments, meaning residents in those townships should have been able to vote for both city council and township trustees, and the townships should have retained their property taxes.
However, the auditor’s office adjusted the boundaries and thus the taxes, and the Board of Elections disallowed multiple jurisdiction voting because both believed the annexations were finalized.
When the city was told about the probe, it received permission from commissioners last October to create a “paper township,” which adjusted the city’s boundaries to include the annexed properties.
Sheets says that action triggered a law that says townships must be compensated for 12 years for the money lost due to the boundary shift.
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Sheets filed this action with the high court, wanting Hamilton to pay the township property taxes going forward — per the law — for 12 years. Sheets also has a case with the Board of Revision to collect back taxes owed because the auditor changed the boundaries as land was annexed.
The other townships have elected not to join the lawsuit.
The Supreme Court has returned the case to the original docket and Hamilton has 21 days to file an answer to the complaint Sheets filed in April.
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