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.
FISCAL IMPACT: For tax year 2008, the City of Columbus has a total of nineteen (19) projects requiring revenue sharing and the total amount of revenue to be shared is $1,559,603.08. The nineteen (19) projects are located in three different school districts with the revenue share subtotals as follows: $1,134,746.67 to Columbus City School District for 15 projects; $94,880.00 to Hilliard City School District for 2 projects; and $329,976.41 to the Olentangy Local School District for 2 projects.
This ordinance authorizes and directs the city auditor to transfer $389,900.77 from the special income tax fund to the General Fund. The transfer amount of $389,900.77 has been factored into the current special income tax analysis and resultant capital capacity.
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.
Title
To authorize and direct the City Auditor to transfer $389,900.77 from the Special Income Tax Fund to the General Fund; to authorize and direct the payment to the Columbus City School District, the Hilliard City School District and the Olentangy Local School District for income tax revenue sharing totaling $1,559,603.08; to authorize the expenditure of $1,559,603.08 from the General Fund; and ...
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