(A) The Ohio Enterprise Zone Program can provide tax exemptions for a portion of the value of new real and personal property. Existing land values and existing building values are not eligible except as noted within the large manufacturing facility or Brownfield site provisions. While the increased value of land that is added by a business as a result of a project is eligible for exemption consideration, the existing taxable value is not eligible for an exemption.
(B) Categories of tangible personal property eligible for an Enterprise Zone tax exemption include:
(1) New machinery and equipment purchased by the business;
(2) Used machinery and equipment purchased by the business from another firm in Ohio which is not an affiliate and that was never used by the business seeking exemption;
(3) Used machinery or equipment brought to the project site by the business from a location outside Ohio and placed into service for the first time in Ohio as a result of the project.
(4) Machinery and equipment owned by the business in Ohio, but never previously placed into operation;
(5) Specified new inventory added as a result of an expansion at the site in excess of the amount or value of inventory listed in the personal property tax return of the business in the return for the tax year in which the agreement is entered into; and
(6) New inventory added as a result of the establishment of a facility.
(C) The municipality, in considering granting personal property tax exemptions, will review and adhere to R.C. § 5709.61(O), especially the “first-used-in-business” standard that states “the property referred to has not been used in business in this state by the enterprise that owns it, or by an enterprise that is a related member or predecessor of such enterprise, other than as inventory, prior to being used in business at a facility as the result of a project.” Related members or predecessor enterprises are not eligible for these incentives. Enterprise Zone Agreements within the property known as the “New Lebanon Centre,” and as are covered by Section 4 of the “Shared Revenue Agreement” between the municipality and Perry Township, are not eligible for personal property tax exemption unless expressly agreed by the Perry Township Board of Trustees.
(D) Each project will be unique in circumstances. The municipality will gather as much detail on the proposed project as possible and apply the standards set forth in the Ohio Enterprise Zone Act before making determinations of eligibility or approving any incentives.
(Res. 2000-41, passed 9-19-00)