Case No. 2008-2018
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IN THE SUPREME COURT OF OHIO OHIO GROCERS ASSOCIATION, et al., Plaintiffs-Appellees, Case No. 2008-2018 V. On Appeal from the Franklin County RICHARD A. LEVIN, Ohio Tax Court Of Appeals, Commissioner, Tenth Appellate District Defendant-Appellant. Court of Appeals Case No. 07AP-813 SUPPLEMENT TO BRIEF AMICUS CURIAE OF THE OHIO RESTAURANT ASSOCIATION IN SUPPORT OF APPELLEES Richard Cordray (0038034) Stephen E. Chappelear (0012205) Attorney General of Ohio HAHN LOESER + PARKS LLP 65 East State Street, Suite 1400 Benjamin C. Mizer (0083089) Columbus, Ohio 43215 Solicitor General Telephone: (614) 221-0240 Stephen P. Carney (0063460) Facsimile: (614) 221-5909 Elisabeth A. Long (0084128) E-mail: [email protected] Deputy Solicitors Lawrence D. Pratt (0021870) Attorneys for Amicus Curiae Julie Brigner (0066367) OHIO RESTAURANT ASSOCIATION Assistant Attorneys General 30 East Broad Street, 17"' Floor Charles R. Saxbe (0021952) Columbus, OH 43215 Donald C. Brey (0021965) Telephone: 614-466-8980 Gerhardt A. Gosne111I (0064919) Facsimile: 614-466-5087 CHESTER, WILCOX & SAXBE LLP [email protected] 65 E. State Street Suite 1000 Counsel For Defendant-Appellant Columbus, OH 43215 RICHARD A. LEVIN, OHIO TAX Telephone: 614-221-4000 COMMISSIONER Facsimile: 614-221-4012 Attorneys for Plaintiffs-Appellees OHIO GROCERS ASSOCIATION, ET AL. MAY CLERK ®F COURT Col - 136249.1 SUPREME COURT OF OHIO APPENDIX Exhibit A N. R. Howard, Sales Tax in Ohio Wins After Fight, N.Y. Times, Dec. 16, 1934 ................................................................ 1 Exhibit B Ohio is Expected to End Tax on Food, N.Y. Times, Sept. 18, 1936. 2 Exhibit C Andrew Chamberlain & Patrick Fleenor, Tax Pyramiding: The Economic Consequences Of Gross Receipts Taxes, Tax Foundation Special Report, Dec. 2006 ....................................... 3 Exhibit D Takeout Provides Key Growth Vehicle for Restaurants Says Technomic, August 13, 2007 ............................................................. 15 Exhibit E The Constitution of the State of Ohio with Amendments Proposed by the Constitutional Convention of 1912 and Approved By the People, in 2 Proceedings and Debates of the Constitutional Convention of the State of Ohio, 2135 (E. S. Nichols ed., The F.J. Heer Printing Co.) (1912) ........................................................... 17 Exhibit F Nicholas Johnson and Iris J. Lav, Should States Tax Food? Examining the Policy Issues and Options, Center on Budget and Policy Priorities, May 1998 . .............................................................. 68 Exhibit G U.S. Bureau of the Census, Government Finances and Employment Classification Manual, October 2006, at 4-10-11 (Code T09 applies to "General Sales and Gross Receipts Taxes") ... 127 Exhibit H Which States Tax the Sale of Food for Home Consumption in 2007?, Center on Budget and Policy Priorities, Nov. 1, 2007........... 190 Exhibit I Ohio Department of Job and Family Services Annual Report, 2007 191 Col - 136249,1 CERTIFICATE OF SERVICE I certify on the 26th day of May, 2009, the foregoing was served by regular U.S. mail, postage prepaid upon the following: Richard Cordray Shirley Sicilian Attorney General of Ohio General Counsel Sheldon H. Haskin* Benjamin C. Mizer* *Counsel of Record Solicitor General MULTISTATE TAX COMMISSION *Counsel of Record 444 N. Capitol Street, N.W., Ste. 425 Stephen P. Carney Washington, D.C. 20001-1538 Elisabeth A. Long 202-624-8699 Deputy Solicitors 202-624-8819 (fax) Lawrence D. Pratt Counselfor Amicus Curiae Julie Brigner Multistate Tax Commission Assistant Attorneys General 30 East Broad Street, 17u' Floor Richard C. Farrin* Columbus, OH 43215 *Counsel of Record 614-466-8980 Thomas M. Zaino 614-466-5087 (fax) McDONALD HOPKINS LLC Counsel for Defendant-Appellant 41 S. High Street, Suite 3550 RichardA. Levin, Columbus, OH 43215 Ohio Tax Commissioner 614-458-0035 614-458-0028 (fax) Kurtis A. Tunnell* *Counsel of Record Kathleen M. Trafford* Mark A. Engel *Counsel of Record Anne Marie Sferra PORTER, WRIGHT MORRIS & ARTHUR BRICKER & ECKLER LLP LLP 100 South Third Street 41 S. High Street Columbus, OH 43215 Columbus, OH 43215 614-227-2300 614-227-1915 614-227-2390 (fax) 614-227-2100 (fax) Counrel for Amici Curiae, The Ohio Counsel for Amicus Curiae Manufacturers' Association, Ohio State Ohio Business Roundtable Medical Association, The Ohio Society of Certtfied Public Accounts, Ohio Dental Association, and Ohio Chemistry Technology Council Cot - 136249.1 Fred J. Livingstone* Pierre H. Bergeron* *Counsel ofRecord *Counsel of Record J. Donald Mottley Thomas D. Amrine Judson D. Stelter SQUIRE, SANDERS & DEMPSEY LLP TAFT STETTINIUS & HOLLISTER LLP 221 E. Fourth Street, Suite 2900 200 Public Square, Suite 3500 Cincinnati, OH 45202 Cleveland, OH 44114-2302 513-361-1200 216-241-2838 513-361-1201 (fax) 216-241-3707 (fax) Counsel for Amici Curiae Counsel for Amicus Curiae Ohio Legal Assistance Foundation, The Ohio School Board Association Coalition on Homelessness & Housing in Ohio, Corporation for Ohio Stephen L. Byron* Appalachian Development, *Counsel of Record Ohio Association of Free Clinics, and Rebecca K. Schaltenbrand Ohio Council of Behavioral Health & SCHOTTENSTEIN, ZOX & DUNN CO., Family Services LPA 4230 State Route 306, Suite 240 Robert J. Walter* Willoughby, OH 44090 *Counsel ofRecord 440-942-7809 James E. Melle 216-621-5341 (fax) BUCKLEY KING LPA 10 West Broad Street, Suite 1300 John Gotherman* Columbus, OH 43215 *Counsel of Record 614-461-5600 OHIO MUNICIPAL LEAGUE 614-461-5630 (fax) 175 South Third Street, Suite 510 Counsel for Amici Curiae Columbus, OH 43215-7100 AFL-CIO, American Federation of State, 614-221-4349 County Municipal Employees Ohio Council 614-221-4390 (fax) 8, Communications Workers ofAmerica District 4, Fraternal Order of Police of Stephen J. Smith* Ohio, Inc., Ohio Association ofProfessional *Counsel of Record Firefighters, Ohio Association of Public SCHOTTENSTEIN, ZOX & DUNN CO., School LPA Employees (OAPSE)/AFSCME Local 4, 250 West Street Ohio Education Association, Ohio Columbus, OH 43215 Federation of 614-462-2700 Teachers, and Service Employees 614-462-5135 (fax) International Counsel for Amicus Curiae Union District 1199 The Ohio Municipal League and on behalf ofthe County Commissioners Association of Ohio, The Ohio Township Association, the Buckeye State Sheriffs' Association Amici Curiae Col - 136249.1 Kyle O. Sollie* Charles R. Saxbe* *Counsel of Record *Counsel ofRecord Sara A. Lima Donald C. Brey REED SMITH LLP Gerhardt A. Gosnell II 1650 Market Street, 25th Floor CHESTER, WILCOX & SAXBE LLP Philadelphia, PA 19103 65 East State Street, Suite 1000 215-851-8872 Columbus, OH 43215 215-851-1420 Counsel for Plaintiffs-Appellees Counsel for Amicus Curiae, Ohio Grocers Association, et al. Tyson Sales and Distribution, Inc. happelear micus Curiae ant Association Col - 136249.1 Col - 136249.1 SAO TAX INON[0 WINS AFTER FICHT MercAants Flnally ppreed and Gurancr AroeVted the InsvTeble. FIVE TIMES OEFEATPD Re°I Ertde 11N41 Cut Rer- .nu.l° P°Int WA°le 9dronh Wtl1 CurtWed. w.l,ls'^.•'m°W^o. ¢Rt^aL11Nn. n.t v.-ov°s .IIC O.I.kYlla. N W.N.m2w1 mt^alnm v.. wcuN N. uo+n.r x pw.p b.Mlly ee ^tw.tn.uuwnmm. vbmm. mu. m°u. m a.mWS. M.BVeta.9bbmmnWanr• n 4 le..y 11. Wmiu apv1^ e.xIW.1.yminntwW .xa^1.YU n[ Y u n nnu1 mY b..W1 W p ^.m Me. enelnllt entl un ev°aw ..^.ww.. w.ee^• w .W. ^m .e Ic TT.m1..1..m..s..w°.d°. lnb° Y.. Ilmn N.L. M. y.n. e! W. aueml OWV Iwelt6bn. ..e W° Ib ewWltT N C.muo. 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Irn v.°•m.lm.^ hwiolui°w.v,i::v`s::uua e>rw. _ I.e1.6be. nmW u iop^mva'Ha.b^y Mi4 ,ie vsvrtmlthiW.xlplv.r xtWx.° m le.. b n 4.° .x.,4 u lS5.4M.¢4 m u.eoaa°° ^ wm w .u^'iawma^ v umsm.cua ^n° N.1.°°Itlc..l nv nlp L..D w Ww.i° xN^4.`enr .11tu11ui.Ib.ulYnX R.°mbb° a urVw WLe..Zss W6IUe. Th. cMU NdY.ltullm.l.lN 1. {IO.qpAW o^t>.xi b. .w° W..•gtu.. .aw µ: OYJM^ b nvbe! WYnlx um. wenE W.tN.OA. Oat e1 W. Inaw NAy.ew.+ll b Ilmt. ta a.^ Oeb N° y. tm.lnu: flW]LO ^p» Wr m^mti. all.^n ef Ni na.x It.ttepb 1w u. mmn ^ ^ x. 010^ NIC tq%°.6tl e.ol rtIC: m mW®w wel M mwt^.illl..• NIE. m.tm .m.o.s.t w. isi.cwaoo :arm v.lm.t A.na mo^°mnoe.btm ^W^° W. roYwal M W N w.mpleymn! W OW.. _ _ 4.cY In W. nx. L.{hl.tw el Ya.ll. LeL. WilVmi:'8n:^ni Riml+n•lhm! Iwp mwlu. IlywYKl.1[ntlfD. EAr?'wtyAtflmn 001 EXHIBIT OHIO IS EXPECTED TO END TAX ON FOOD But E[imination From Sales Levy Will Bring Up New Puzzle.