The funds collected under the provisions of this chapter shall be disbursed in the following manner:
(a) First, such part thereof as shall be necessary to defray all expenses of collecting the tax and of administering and enforcing the provisions of this chapter shall be paid.
(b) In any and all actions whereby the City of Canal Fulton grants exemption from real property taxes for any business or industry, the City will compensate the Northwest Local School District for the real property taxes it would have received according to the following procedures and formulas:
(1) The Finance Director of Canal Fulton and the Treasurer of the Northwest Local School District will jointly contact the Stark County Auditor and request written, specific appraisal data pertaining to business or industry requesting exemption from real property taxes within the City of Canal Fulton.
(2) The business or industry requesting exemption from real property taxation from the City of Canal Fulton shall provide the administration and City Council financial reports, income and earnings statements, employment statistics and employee earnings data to enable the City to reasonably determine the potential annual City income tax revenues that will be realized from normal operations of the business or industry within the corporate limits of Canal Fulton while the exemption from real property taxation is in effect.
(3) New business or industry. Actual annual Canal Fulton City income tax receipts from each and every year that an exemption from real property taxation remains in effect will be used to determine the actual amount of compensation paid to the Northwest Local School District by the City of Canal Fulton for real property taxes that would have been received by the School District.
A. If the actual income tax received by the City is greater than the annual property tax revenue that would have been realized by the Northwest Local School District (the amount as determined by the Stark County Auditor), the City of Canal Fulton will pay to the Northwest Local School District the amount of revenue that would have been realized from the property tax assessment. This payment shall be made to the Northwest Local School District in its entirety within thirty days of receipt of payment by the City of Canal Fulton of the final City Income Tax amount(s) owned by the business or industry for the prior year.
B. If the actual income tax received by the City is equal to or less than the annual property tax that would have been realized by the Northwest Local School District (the amount as determined by the Stark County Auditor) the City of Canal Fulton will pay to the Northwest Local School District one-half of the actual income tax received from the business or industry. This payment shall be made to the Northwest Local School District in its entirety within thirty days of receipt of payment by the City of Canal Fulton of the final City Income Tax amount(s) owned by the business or industry for the prior year.
(4) Existing business or industry. In the case of property tax abatements granted to existing businesses or industries which are expanding, tax sharing shall apply only to additional income tax revenues yielded by the development. Additional income taxes shall be calculated by subtracting the amount of income taxes collected in the year prior to the abatement (base year) from the income tax collections during each year of the abatement (abatement year 1, 2, 3, etc.)
A. If the actual additional income tax received by the City is greater than the annual additional property tax revenue that would have been realized by the Northwest Local School District (the amount as determined by the Stark County Auditor) the City of Canal Fulton will pay to the Northwest Local School District the actual amount of revenue that would have been realized from the additional property tax assessment. This payment shall be made to the Northwest Local School District in its entirety within thirty days of receipt of payment by the City of Canal Fulton, Ohio of the final City Income Tax amount(s) owed by the business or industry for the prior year.
B. If the actual additional income tax received by the City is equal to or less than the annual additional property tax that would have been realized by the Northwest Local School District (the amount as determined by the Stark County Auditor) the City of Canal Fulton will pay to the Northwest Local School District one-half of the actual additional income tax received from the business entity. This payment shall be made to the Northwest Local School District in its entirety within thirty days of receipt of payment by the City of Canal Fulton of the final City Income Tax amount(s) owned by the business or industry for the prior year.
C. The balance remaining after payment of the expenses referred to in subsections (a) and (b) hereof, shall be deposited in the General Fund for street construction maintenance and repair, capital improvements and general Municipal operations, or in such other fund or funds as Council may from time to time establish or designate.
(Ord. 37-03. Passed 12-16-03.)