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.
For tax year 2009, the City of Columbus has a total of sixteen (16) projects requiring revenue sharing and the total amount of revenue to be shared is $1,467,630.50. The sixteen (16) projects are located in three different school districts with the revenue share subtotals as follows: $1,130,881.02 to Columbus City School District for 13 projects; $40,222.57 to Hilliard City School District for 1 project; and $296,526.91 to the Olentangy Local School District for 2 projects.
Emergency action is requested in order to expedite payment to the three school districts to compensate them for property tax revenues forgone due to tax abatements.
FISCAL IMPACT: This ordinance authorizes and directs the City Auditor to transfer $366,907.63 from the special income tax fund to the General Fund and authorizes the expenditure of $1,467,630.50 from the General Fund. The transfer amount of $366,907.63 has been factored into the current special income tax analysis and resultant capital capacity.
Title
To authorize and direct the City Auditor to appropriate and transfer $366,907.63 from the Special Income Tax Fund to the General Fund; to authorize and direct payments to the Columbus City School District, the Hilliard City School District and the Olentangy Local School District for income tax revenue sharing totaling $1,467,6...
Click here for full text