Explanation
BACKGROUND: By authority of ORC Section 5709.82, the City is required to pay affected school districts 50 percent (50%) of 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 measured by the sum total of both construction labor and company 'new employee' wages paid in a tax year, during the years of tax exemption.
FISCAL IMPACT: For tax year 2002, the City of Columbus has a total of nineteen projects requiring revenue sharing and the total amount of revenue to be shared is $1,740,347. The nineteen projects are located in four different school districts with the revenue share subtotals as follows: $1,098,977 to Columbus City School District for 13 projects; $42,983 to Hilliard City School District for 2 projects; $540,125 to Olentangy Local School District for 2 projects; and $58,262 to South-Western City School District for 2 projects.
Emergency action is requested in order to expedite payment to the four school districts to compensate them for property tax revenues forgone due to tax abatements.
Title
To authorize and direct the payment of $1,098,977 to the Columbus City School District, $42,983 to the Hilliard City School District, $540,125 to the Olentangy Local School District and $58,262 to the South-Western City School District for income tax revenue sharing totaling $1,740,347; to authorize the expenditure of $1,740,347 from the General Fund; and to declare an emergency. ($1,740,347).
Body
WHEREAS, the Ohio Revised Code Section 5709.82 requires the City to pay affected school districts fifty percent (50%) of municipal income tax revenue attributable to tax abated projects where 'new employee' payro...
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