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...
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