Hickey v. City of Toledo

Sherck, Judge.

This appeal comes to us from a judgment of the Lucas County Court of Common Pleas. There, a taxpayer appealed from the imposition of city income tax on monetary proceeds derived from the exercise of stock options. Because we conclude that the recognized gain from the sale of stock was nontaxable intangible income, we reverse.

In 1987, appellant, Charles J. Hickey, was a high-ranking official of Owens-Illinois Company (“O-I”) when it was acquired by a subsidiary of the New York investment firm of Kohlberg, Kravis and Roberts. After the acquisition, Kohl-berg took the company…