Explanation
BACKGROUND: By authority of ORC Section 5709.82, the City is required to pay affected school districts 50 percent (50%) of the municipal income tax revenue attributable to tax abated projects where the annual ‘new employee’ payroll for a project is one million dollars or more, in a given tax year, during the abatement. This municipal income tax revenue sharing with affected school districts applies to all property tax abatements approved by the legislative authority after July 1, 1994 and is based on the ‘new employee’ wages paid in a tax year, during the years of tax exemption, and also on the wages of the construction workers.
FISCAL IMPACT: For tax year 2021, the City of Columbus has a total of thirty-four (34) agreements requiring revenue sharing and the total amount of revenue to be shared is $2,865,779.92. The thirty-four (34) agreements are related to projects located in six (6) different school districts with the revenue share subtotals as follows: $1,879,818.14 to the Columbus City School District for twenty-two (22) agreements, $71,457.60 to the Gahanna Jefferson City School District for three (3) agreements, $581,966.99 to the Hilliard City School District for four (4) agreements, $193,357.78 to the Olentangy Local School District for two (2) agreements, $114,071.43 to the South-Western City School District for two (2) agreements and $25,107.98 to the Worthington City School District for one (1) agreement.
Emergency action is requested in order to expedite payment to the six (6) school districts to compensate them for property tax revenues forgone due to tax abatements.
FISCAL IMPACT: The 2022 General Fund budget (citywide account) includes funding for these payments. A transfer equal to 25 percent (25%) of the payment will be transferred from the Special Income Tax Fund. The transfer amount of $716,444.98 has been factored into the current special income tax analysis and resultant capital capacity.
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To authorize and direct t...
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