Ohio Suburb Can't Claim $1.4M Lottery Tax (yeah THAT lottery ticket) [View All]

[underpants]

http://story.news.yahoo.com/news?tmpl=story&cid=817&e=2&u=/ap/mega_millions_tax
Tue Jan 20, 6:24 AM ET
SOUTH EUCLID, Ohio - Rebecca Jemison, who emerged as the true winner of last month's $162 million lottery drawing, is suddenly even richer. This Cleveland suburb is suddenly much poorer.

South Euclid city officials were stunned to learn that they can't collect $1.4 million in income taxes from the winning Mega Millions ticket since the city charter wasn't updated to include lottery winnings as taxable income.

Rebecca Jemison took the lump sum payment option of the $162 million jackpot, walking away with $67 million. Now, she's $1.4 million richer.

The news came at a bad time for South Euclid, which laid off six workers and made other cuts to help bring its $16.5 million budget down to $13 million, Welo said. The city had planed use the windfall to rehire some workers and improve parks and recreation programs.

The tax mixup is the latest plot twist in an unusually eventful lottery drawing. Days after the Dec. 30 drawing, another woman filed a police report saying she lost the winning ticket and was later found guilty of filing a false police report.