CLEVELAND — Sen. Sherrod Brown, D-Ohio, has for years claimed an owner-occupancy tax credit on two properties, public records show, a possible violation of state rules governing such incentives.
Brown and his wife, journalist Connie Schultz, have also fallen behind on taxes on their Cleveland home at least seven times since they bought it in 2013, losing a payment deadline as recently as February, according to documents kept by the Cuyahoga County treasurer. At one point in 2015, the county listed them as delinquent after they failed to pay a nearly $1,200 bill for months.
In response to questions from NBC News, Brown and Schultz this week paid a $390 penalty stemming from their most recent late payment. Brown also paid Franklin County, where she owns a Columbus condo, for occupancy credits she shouldn’t have received, her campaign manager, Rachel Petri, said Wednesday. She did not say what caused the errors.
“They made a mistake, they fixed it and they paid Franklin County,” Petri said.
Brown will no longer accept the owner-occupancy credit for the Columbus property, according to his campaign. Jennifer Lockrey, a spokeswoman for the Franklin County auditor, confirmed that the credit was removed. County treasurer Cheryl Brooks Sullivan confirmed a payment of $616 was made Tuesday.
Lockrey noted that sometimes such errors are attributable to paperwork done by title companies.
«It’s not unusual for owners of more than one property,» Lockrey said.
Tax issues come to light when Brown, who chairs the Senate Banking, Housing and Urban Affairs Committee is preparing for a tough re-election bid in 2024. And they echo stories that have haunted their past campaigns. In 2012, The Plain Dealer of Cleveland reported about tax delinquencies related to a condominium owned by Brown in Washington, D.C.
“I lost the bill and I paid it as soon as I found out,” Brown said at the time, according to the newspaper. «I paid a fine for being late and it won’t happen again.»
Brown’s acceptance of the two 2.5% tax credits, which since 2019 had saved him more than $1,000 between the two properties, could have drawn scrutiny from local tax collectors who were unaware he was receiving the benefit in two counties. . The senator and Schultz have claimed credit for their Cleveland home for a decade, records show. Brown had received credit for his downstate Columbus condo since at least 2019, according to documents available online through the Franklin County treasurer.
State and local officials, citing ohio law and explicit requirements for eligibility, he stressed to NBC News that the owner-occupancy tax credits are intended for a single property. To claim the credit twice, a married couple would have to show that they live apart.
A spokesperson for the Ohio Department of Taxation pointed to several excerpts from state law when asked what consequences a couple could face if a county auditor or treasurer found they had improperly claimed the tax credit on two properties. One section establishes that owners could be required to return what did not belong to them, plus interest.
Cuyahoga County records show that both Brown and Schultz are registered to vote at the Cleveland address, which is their primary residence. Schultz has written about how the couple, who previously lived in an upscale suburb, wanted to be a part of the city’s renaissance. During the housing crisis of the early 2000s, your ZIP code led the nation in foreclosures.
As for their late payments, publicly available copies of the property tax bills for the Cleveland home of Brown and Schultz show the fees for missing deadlines on their taxes for 2022, 2021, 2019, 2018, 2015 and 2014. Two fines related to his 2014 tax bill triggered the delinquency. All of those charges have since been resolved, including the $390 fee paid Tuesday, Cuyahoga County spokeswoman Mary Louise Madigan said. Franklin County tax records available online show no late payments or penalties for Brown’s Columbus condo, purchased in 2014, for the past four years. Schultz is not listed as the owner on the Columbus property tax bill.
US senators are paid $174,000 a year. Brown, 70, a former Ohio secretary of state and state lawmaker who joined the Senate in 2007, also noted $26,000 in 2021 income from Ohio’s state retirement fund in his most recent report. personal financial disclosure form. That document also listed $133,000 to $395,000 in joint assets against $200,000 to $500,000 in two mortgages identified as liabilities. The full extent of Schultz’s income was not provided, but in 2021 she earned more than $5,000 in fees from freelance writers and speakers, plus book royalties and salaries from Kent State University and USA Today.
“All Ohioans are expected to pay their taxes on time,” said Philip Letsou, a spokesman for the Senate Republican National Committee, “but Sherrod Brown apparently thinks he’s too important to pay his own.”
Ohio schools rely heavily on property tax revenue, and late payments affect their accounting. A Cleveland schools official told The Plain Dealer in 2019 that the district budgets with the expectation that it will collect 88% of what is owed in a particular year.
Brown’s re-election battle is expected to be one of the most costly and competitive in the country next year, as both parties vie for control of the Senate.
Ohio, once a tight battleground, has turned more Republican during Brown’s time in office. He is the only Democrat to have consistently won statewide elections, but he is likely to face a strong and well-funded challenge. The Republican primary to take on Brown already features wealthy candidates including state Sen. Matt Dolan and Cleveland-area businessman Bernie Moreno. Ohio Secretary of State Frank LaRose and US Representative Warren Davidson are also considering offers.