In reversal, Lt. Gov. Taylor won’t offer evidence for ‘criminals’ claim

Lt. Gov. Mary Taylor has sparked surprise in pledging she would end state tax officials’ practice of treating small business owners as “criminals.”

It marked yet another example of Taylor distancing herself from — even criticizing — the administration of the boss, Gov. John Kasich, as she seeks the Republican nomination for governor.

On Monday, Taylor’s campaign agreed to provide evidence to The Dispatch to back up her attack on the Ohio Department of Taxation.

On Tuesday, the campaign said it instead would let its allegation stand based on unspecified “anecdotal evidence” rather than examples of mistreated taxpayers.

“We have a situation, unfortunately, in Ohio where the Department of Taxation treats our small business owners like criminals,” Taylor said at a Sunday forum featuring Taylor and the other GOP candidates: Attorney General Mike DeWine, Secretary of State Jon Husted and U.S. Rep. Jim Renacci of Wadsworth.

“They go in and change the interpretation of the law and the interpretation of the tax provisions and they audit a small business, they assess back taxes, penalties and interest. It’s wrong. I will stop that. It will not continue,” Taylor told the crowd of several hundred.

The administration of Kasich, who has supported Taylor as his successor, gently pushed back in disagreeing with the statement. Taylor also has parted from Kasich by saying she would end new enrollment in expanded Medicaid health-care coverage for the poor, which the governor is fighting to save.

“Since we eliminated state income taxes for most small businesses in Ohio, our taxation department doesn’t have as much to do these days, but what they do, they do very, very well,” said Kasich press secretary Jon Keeling. “That’s just one of the reasons why business leaders say Ohio has the most improved business climate in the nation.”

Taylor’s statement was based upon her experience as a certified public accountant and leading the Common Sense Initiative to review state regulations through which she has sometimes served as an “ombudsman” between taxpayers and taxation officials, said campaign spokesman Michael Duchesne.

“Mary Taylor wants to create a culture in Ohio where tax laws are to be enforced, but also where businesses and other taxpayers are not treated like criminals,” he said. Taylor’s tax plan states that Ohioans should not be penalized if they make goodfaith efforts to comply with tax laws.

Roger Geiger said he wouldn’t use the word “criminal.”

But, state tax examiners seldom offer service with a smile when they come calling, said the executive director of the National Federation of Independent Business-Ohio.

Geiger, who has 28 years with the group, said the Department of Taxation historically has been among the “more difficult” state agencies for small businesses to work with. It’s nothing new that has cropped up under the Kasich administration, he said.