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Wed., 9:38am: Court rejects Youngstown's prison tax

June 19, 2013
Tribune Chronicle |

YOUNGSTOWN -- A state appeals court says the city of Youngstown can't impose a per-inmate tax on a privately operated federal prison.

The Seventh District Court of Appeals this week nullified a $1 a day tax the city has been imposing per prisoner at the Northeast Ohio Correctional Center, run by the Corrections Corporation of America.

The court ruled it's an occupation tax that's illegal because it was enacted by city council and not by voters.

The decision overruled a Mahoning County judge who last year ruled against the Corrections Corporation of America, which has asked for relief from the tax. The company contended it was an occupational tax because it targets a specific occupation or business.



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