Explanation
BACKGROUND: House Bill 66 (Amended Substitute House Bill Number 66, FY 2006-2007 Budget Bill, passed by the 126th Ohio General Assembly) phases out the tax on the tangible personal property of general businesses, telephone and telecommunications companies, and railroads. The tax on general business will have been eliminated by 2009. The tax was phased out by reducing the assessment rate on the property each year of the phase out period.
Forty-seven (47) currently active Enterprise Zone Agreements held between the City of Columbus and various Enterprises contain language indicating that said Enterprise would receive a property tax abatement on personal property investments or that Enterprise was to invest in personal property as part of the project. In addition, five (5) currently active Community Reinvestment Area Agreements held between the City of Columbus and various Enterprises contain language indicating said Enterprise was to invest in personal property as part of the project.
Each of the Enterprises associated with these forty-seven (47) currently active Enterprise Zone Agreements and five currently active Community Reinvestment Area Agreements have satisfied their real and personal property investment goals, and with the reduction of the assessment rate for the tangible personal property tax being reduced to zero percent (0%) the various Enterprises listed above will no longer receive any benefit from an agreed-to abatement. Additionally, as long as language indicating that tangible personal property investment will be made in association with a given project remains in the above agreements, each Enterprise will continue to be required to report such investment as part of the annual reporting process both to the Ohio Department of Development and to the annual Columbus Tax Incentive Review Council. It is the opinion of the Department of Development that such language is no longer needed.
Additionally, six (6) of the forty-seve...
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