Explanation
BACKGROUND: By the authority granted in 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 term. 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 2022, the City of Columbus has forty-one (41) agreements requiring revenue sharing and the total amount of revenue to be shared is $4,215,475.17. The forty-one (41) agreements are related to projects located in five (5) different school districts with the revenue share subtotals as follows: $3,125,794.26 to the Columbus City School District for thirty-one (32) agreements, $710,645.50 to the Hilliard City School District for four (4) agreements, $252,096.70 to the Olentangy Local School District for two (2) agreements, $103,699.61 to the South-Western City School District for two (2) agreements and $23,239.10 to the Worthington City School District for one (1) agreement.
Emergency action is requested in that it is immediately necessary to authorize payment to the Columbus City School District, the Hilliard City School District, the Olentangy Local School District, the South-Western City School District, and the Worthington City School District to compensate them for property tax revenues forgone due to tax abatements, which payments need to be made prior to the new school year so that the districts can account for the receipt and accounting of those funds.
FISCAL IMPACT:
The 2023 General Fund budget (citywide account) includes funding for these payments. A transfer equal to 2...
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