(a) This policy is adopted to provide direction to the Housing Officer when administering CRA tax exceptions under the provisions of this Chapter and all qualifying activities as per Ohio R.C. 3735.67.
(b) It shall be the policy of the City to grant CRA tax exceptions for qualifying activities under this Chapter and Ohio R.C. 3735.67 based on the following formula:
(1) The following calculation is designed to define the maximum term for which any applicant company could qualify for abatement. The information needed is as follows:
A. The number of employees at the time of application, the total income of these employees, and the percentage of their work time spent in the City (if applicable);
B. The "'true value", for tax purposes, of the real estate to be abated.
(c) The process begins by calculating the annual real estate taxes foregone by granting the abatement. This number will become the denominator in the abatement calculation. The numerator in the calculation will be the annual income tax revenue that the City expects to receive from employment at the applicant company, as of the date of application, multiplied by fifteen (the maximum number of years that abatement could be granted). The result of this division will be a number that equates to the years it takes for breakeven between the real estate taxes foregone and the income taxes to be received. This result should be rounded down to the nearest whole number (year).
(d) The Housing Officer shall perform the preceding calculation for any individual applying for CRA tax exceptions to determine the length of the tax abatement. The minimum abatement period shall be five years and the maximum fifteen years. Tax exceptions for retail and qualifying housing improvements shall not exceed five years. The Housing Officer shall notify the applicant in writing of the number of years to be exempted based on this policy. Any aggrieved applicant may appeal the decision of the Housing Officer to the Council Economic Development Committee upon written request within ten days from the date of the notice of award.
(Res. 32-02. Passed 10-8-02.)
(Res. 32-02. Passed 10-8-02.)