(A) All Enterprise Zone Agreements involving projects generating $1,000,000 of new annual payroll located within the municipality require the municipality to negotiate a compensation agreement with the New Lebanon Board of Education or Miami Valley Career Technology Center. If agreement cannot be reached within six months of the formal legislative approval of the Enterprise Zone Agreement, then the Board of Education shall be compensated with 50% of the income tax generated by the new employees, to be offset by any income tax levied specifically by the New Lebanon Board of Education or Miami Valley Career Technology Center.
(B) The mandatory 50/50 sharing is enforced only when the Board of Education and the municipality cannot reach agreement. The mandatory 50/50 split is capped at the amount the Board of Education would have received had the project property not been exempted. The revenue sharing provision is geared to compensate the Board of Education for foregone revenues.
(C) Any revenue sharing agreement executed may include as a party the owner of the real and/or personal property exempted under the agreement. The owner may commit to provide cash, property or services by gift, loan or otherwise.
(D) If the Board of Education and the municipality fail to reach an agreement, then the 50/50 sharing payment is due on December 31 of that year for or in which the exemption from taxation commences. The mandatory provision is maintained for each subsequent tax year where the “new” annual payroll exceeds $1,000,000 and the specified property remains exempted. A subsequent agreement between the Board of Education and the municipality would supersede the mandatory provision.
(E) The definition of “new employee” includes income tax revenues from construction jobs and persons who are first employed at the site of such property and who within the two previous years have not been subject to, prior to being employed at this site, income taxation by the municipality on income derived from employment for the person’s current employer. New employee does not include any person who replaces a person who is not a new employee.
(F) The municipality and the Board of Education should devise a procedure to verify income tax revenues eligible for the revenue sharing requirements. Additional data collection and monitoring will be necessary. To avoid verification problems, the procedure should be agreed to prior to any specific project identification.
(Res. 2000-41, passed 9-19-00)