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	Convention center is unlikely to grab sales tax rollback Monday, June 27, 2005 Sarah Hollander and Joan Mazzolini Plain Dealer Reporter A state sales tax rollback could be commandeered to help pay for a new Cleveland convention center, but the politically unpopular move seems unlikely. State legislators passed a temporary penny sales tax increase two years ago. The increase is set to expire at the end of the month, although Ohio's new budget would immediately reinstate a half-cent of it. Cuyahoga County commissioners could vote to keep collecting some or all of the other half cent, which would generate up to $80 million a year for a convention center, economic development or other projects. Commissioner Jimmy Dimora, however, said such a move would be a sneaky thing to do to already tax-weary voters. "It's like you're trying to pull the wool over people's eyes," Dimora said. "I wouldn't be comfortable doing that. “ It was bad enough the state imposed it without a vote." Commissioner Peter Lawson Jones agreed that the county shouldn't ask taxpayers to continue paying even a small portion of the half-cent rollback. "Some people said we should keep it on, because psychologically people wouldn't feel the impact," Jones said. "But we shouldn't collect it before we need it." Convention center construction could be several years away, he said. And, if necessary, the commissioners can raise the sales tax later to help pay the costs. Jones said he might be open eventually to increasing the sales tax by an eighth of a cent to raise $20 million to $25 million a year for the convention center. That, along with an increase in the hotel bed tax - which the commissioners can increase without a vote - might be enough for a reasonably priced convention center, he said. "We need to build it at a site where we can control costs and, if needed, expand it years from now," Jones said. Dimora said he hasn't decided whether he's in favor of increasing the sales tax for the convention center. And if the commissioners raised the tax, residents could collect enough signatures to repeal it, he said. "I've told everyone, putting it on is easy, keeping it on is tough," he said. The sales tax in Cuyahoga County is 8 percent - 6 percent for the state, and 1 percent each for the county and the Greater Cleveland Regional Transit Authority. The state rollback would reduce the rate to 7.5 percent starting July 1. Finding money to pay for expanding and upgrading Cleveland's convention center will be extremely difficult, Convention Facilities Authority Chairman William Reidy concedes. The cost could easily reach $500 million. The job becomes even more difficult if left to a public vote, he said. Unlike past voter-approved investments in sports arenas, voters who wouldn't use the convention center are less likely to feel a commitment to it. The CFA plans public meetings and focus groups to better craft its sales pitch over the next couple of months. Other funding options include: Raising the countywide bed tax paid by hotel and motel guests, which could be done without a countywide vote. Imposing a countywide restaurant tax on prepared food and beverages, which would have to be approved by voters. Creating a travel and tourism district with higher taxes. Redirecting, increasing or extending various taxes, including sin taxes and property transfer taxes. Taking advantage of various tax credits and sponsorships.	<< Back
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