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.
This ordinance authorizes and directs the city auditor to transfer $526,781.67 from the special income tax fund to the General Fund, and to further authorize the appropriation of said funds to the Economic Development Division. The transfer amount of $526,781.67 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 four school districts to compensate them for property tax revenues forgone due to tax abatements.
FISCAL IMPACT: For tax year 2007, the City of Columbus has a total of thirty-four (34) projects requiring revenue sharing and the total amount of revenue to be shared is $2,107,126.71. The thirty-four projects are located in four different school districts with the revenue share subtotals as follows: $1,558,558.11 to Columbus City School District for 29 projects; $92,018.50 to Hilliard City School District for 2 projects; $341,801.51 to the Olentangy Local School District for 2 projects; and $114,748.59 to the South-Western City School District for 1 project.
Title
To authorize and direct the City Auditor to transfer $526,781.67 from the Special Income Tax Fund to the General Fund; to appropriate said funds to the Economic Development Division; to authorize and direct the payment of $1,558,558.11 to the Co...
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