Explanation
BACKGROUND: The need exists to amend the Columbus Job Creation Tax Credit (JCTC) Agreement with Allied Mineral Products, Inc. that was approved by Columbus City Council by Ordinance 1428-2012 on July 16, 2012, which authorized the Director of the Department of Development to enter into a JCTC Agreement of six-five percent (65%) for a period of seven (7) consecutive years. The JCTC agreement was made and entered into on August 29, 2012.
Currently, Allied Mineral Products, Inc. has both a State and local Job Creation Tax Credit incentive and receives tax credits for creating new jobs within the City. There is a need to change the annual reporting process from the “Certificate of Verification” that is currently being issued by the State to a local process in which the City is responsible for issuing the “Certificate of Verification”. The State of Ohio lowered its tax rates; therefore, companies are paying fewer taxes on its current and/or retained jobs, and for jobs that are newly created. As a result of this action, Allied Mineral Products, Inc. did not receive a “Certificate of Verification” even though the company created new jobs as outlined in its signed JCTC agreement. This “Certificate of Verification” is needed so Allied Mineral Products, Inc. can claim its municipal tax credit on its business returns with the City.
It is therefore necessary to change the method in which the “Certificate of Verification” is issued from the State level to a procedure that will allow the City the ability and authority to issue its own internal “Certificate of Verification”. The City will obtain the company’s annual payroll for both new and retained jobs, the number of newly created jobs and the number of retained jobs; once the information has been collected and verified, the City will issue a “Certificate of Verification”, which will allow Allied Mineral Products, Inc. to claim its municipal tax credit on its business returns with the City.
This legislation is requested to be considered as an emergency in order to allow Allied Mineral Products, Inc. to receive the remaining benefits of the City Council approved Job Creation Tax Credit.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Job Creation Tax Credit Agreement with Allied Mineral Products, Inc. for the purpose of modifying the Grantee’s annual reporting process from a State procedure to a City process and procedure, thus allowing the City to issue the Certificate of Verification that would allow the company to claim its municipal tax credits for new job creation; and to declare an emergency.
Body
WHEREAS, on July 16, 2012, Columbus City Council passed Ordinance No. 1428-2012, which authorized the Director of the Department of Development to enter into a Job Creation Tax Credit (JCTC) Agreement of sixty-five percent (65%) for a period of seven (7) consecutive years with Allied Mineral Products, Inc.; and
WHEREAS, the JCTC Agreement was made and entered into effective August 29, 2012; and
WHEREAS, the need exists to amend the JCTC Agreement with Allied Mineral Products, Inc. to change the annual reporting process from a State procedure to a City procedure; thus allowing the City to issue a Certificate of Verification that would allow Allied Mineral Products, Inc. to claim its annual tax credit for new job creation; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to amend the JCTC Agreement with Allied Mineral Products, Inc. in order to allow it to claim its annual tax credit for new job creation, thereby preserving the public, health, peace, property and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. The Director of the Department of Development is authorized to amend the Job Creation Tax Credit Agreement between the City and Allied Mineral Products, Inc. in order to change the Grantee’s reporting process from a State process to a City annual reporting process that will allow the City to issue the annual Certificate of Verification.
SECTION 2. That the City of Columbus Job Creation Tax Credit Amendment is signed by Allied Mineral Products, Inc. within 90 days of passage of this ordinance, or this ordinance shall be null and void.
SECTION 3. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.