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 for an Enterprise Zone (EZ) or for a Community Reinvestment Area (CRA) two 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 2024, the City of Columbus is making an additional payment on this agreement due to a reporting inconsistency that under counted the new jobs on site. This requires additional revenue sharing for tax year 2024. The total amount of additional revenue to be shared is $284,114.65. This agreement is related to a project located in one (1) school district with the additional revenue sharing of $284,114.65 to the Olentangy Local School District.
Emergency action is requested in order to expedite payment to the one (1) school district to compensate them for property tax revenues forgone due to tax abatement.
FISCAL IMPACT: The 2025 General Fund budget (citywide account) includes funding for these payments. An amount equal to 25 percent (25%) of the payments will be expended from the Income Tax Set Aside Subfund.
Title
To authorize the City Auditor to appropriate the sum of $71,028.66 within the General Fund Income Tax Set Aside Subfund; to authorize the City Auditor to transfer $213,085.99 within the General Fund; to authorize the payment of up to $284,114.65 in accordance with the Public School Revenue Sharing Program for the Olentangy Local School District; to authorize the expenditure not to exceed of $284,114.65 fro...
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