(a) The payments, terms, and provisions discussed in this division (a) shall be, and are, collectively deemed to be the "City's Property Investment Compensation Program." The City shall provide a yearly rebate payment to a Qualifying Enterprise equal to the percentage, as determined by the "Struthers Employment and Investment Program" set forth at the end of this division (a), of the next income tax withholding of the New Employee(s) paid to the City for the taxable year or fiscal year in which the Qualifying Enterprise becomes eligible for the payments provided for within this division (a), which begins with a base of twenty (20) percentage points and adds percentage points thereafter. The term of payments shall be ten (10) calendar years with full payment for the first five (5) calendar years and payments reduced by twenty percent (20%) per calendar year for the remaining five (5) calendar years. The first rebate payment per this division (a) shall be made on or before April 1 of the first calendar year following the taxable year or fiscal year in which the Qualifying Enterprise becomes eligible for the payments provided for in this division (a), with each yearly rebate payment thereafter per this division (a) to be made on or before April 1 of the calendar year. To be eligible for the tax benefits provided for in this division (a), a Qualifying Enterprise must make a Qualifying Investment of at least twenty-five thousand dollars ($25,000.00) and apply for said benefits and execute an agreement therefor in accordance with division (c) of this section.
Struthers Employment and Investment Program
(1) # of New Employees (2) Annual Payroll for New Employees
1-3 | 1 | $10,000.00-$25,000.00 | 3 |
4-10 | 2 | $25,001.00-$100,000.00 | 6 |
11-20 | 3 | $100,001.00-$400,000.00 | 9 |
21-30 | 4 | $400,001.00-$800,000.00 | 12 |
31-50 | 5 | $800,001.00-$1,400,000.00 | 15 |
Over 50 | 6 | Over $1,400,000.00 | 18 |
(3) Qualifying Investment in Real Property (4) Qualifying Investment in Real Property
Improvements Purchase
$5,000.00-$10,000.00 | 2 | $50,000.00-$75,000.00 | 1 |
$10,001.00-$50,000.00 | 4 | $75,001.00-$150,000.00 | 2 |
$50,001.00-$150,000.00 | 6 | $150,001.00-$300,000.00 | 3 |
$150,001.00-$300,000.00 | 8 | $300,001.00-$600,000.00 | 4 |
$300,001.00-$600,000.00 | 10 | $600,001.00 & Over | 5 |
$600,001.00 & Over | 12 |
If building has been vacant over 6 months, If building has been vacant for 6 months,
double percentage points double percentage points
(5) Qualifying Investment in New (6) Public Sector Financing/Assistance
Equipment & Inventory
$10,000.00-$50,000.00 | 2 | No Public Sector Financing | 7 |
$50,001.00-$100,000.00 | 4 | Public Sector Less Than 25% | 4 |
$100,001.00-$200,000.00 | 6 | Public Sector 50% or Less | 1 |
$200,001.00-$400,000.00 | 8 | Pubic Sector Over 50% | 0 |
$400,001.00-$700,000.00 | 10 | ||
$700,001.00 & Over | 12 |
POINTS = %
BASE = 20%
MAXIMUM = 97%
(b) The credits, terms and provisions discussed in this division (b) shall be, and are, collectively deemed to be the "City's Net Profit Credit Program." In addition to any benefits provided for in division (a) of this section, the City shall provide a yearly credit to a Qualifying Enterprise equal to the percentage, as determined by the "Struthers Employment and Investment Program" set forth at the end of division (a) of this section, of the net profit tax liability due to the City for the taxable year or fiscal year in which the Qualifying Enterprise becomes eligible for the credit provided for in this division (b). For purposes of the preceding sentence, however, "the net profit tax liability" shall mean only that portion of the net profit tax liability that is the direct result of the Qualifying Investment. The term of this credit shall be ten (10) calendar or fiscal years with full credit for the first five (5) calendar or fiscal years and reduced by twenty percent (20%) per calendar year or fiscal year for the remaining five (5) calendar years or fiscal years. A credit per this division (b) shall require the paying of the net profit tax generated by the Qualifying Enterprise, net of refunds. To be eligible for the tax credit(s) provided for in this division (b), a Qualifying Enterprise must make a Qualifying Investment of at least one hundred fifty thousand dollars ($150,000.00) and apply for said credit and execute an agreement therefor in accordance with division (c) of this section.
(c) In order for a Qualifying Enterprise to be eligible for any benefits or credits provided for in divisions (a) and/or (b) of this section for the taxable year 2023 or for a fiscal year beginning in 2023, the Qualifying Enterprise shall apply for same on or before March 1, 2023 by completing an application therefor to be prepared by the Treasurer. In order for a Qualifying Enterprise to be eligible for any benefits or credits provided for in divisions (a) and/or (b) of this section for taxable years after 2023 or for fiscal years beginning after 2023, the Qualifying Enterprise shall apply for same, within sixty (60) days after starting or expanding a place of business within the City and having at least one new employee for that business begin work or service, by completing an application therefor to be prepared by the Treasurer. Any application provided for in this division (c) shall, among other things, call for the estimated and proposed number of New Employees, the estimated and proposed amount of compensation to be paid to New Employees, and the estimated and proposed amount of Qualifying Investment(s). Any application provided for in this division (c) shall be reviewed by a committee known as the "ITI Program Oversight Committee." The ITI Program Oversight Committee is hereby established and shall consist of the Treasurer, Law Director, Auditor, Mayor, and an appointee of the Mayor who shall not be an official, officer or employee of the City. Once the application is reviewed by the ITI Program Oversight Committee, the ITI Program Oversight Committee shall make a recommendation to Council to approve and disapprove the application, and Council shall vote to approve or disapprove the application. If Council approves the application, a written agreement therefor shall be made and entered into by and between the City and the Qualifying Enterprise. Any such agreement shall, among other things, set forth and be conditioned upon the estimated and proposed number of New Employees, the estimated and proposed amount of Qualifying Investment, the estimated and proposed amount of compensation to be paid to the New Employees, the estimated and proposed amount of Property Investment Compensation Program rebate payments and/or the estimated and proposed amount of Net Profit Credit Program credits. Any such agreement shall first be approved by the ITI Program Oversight Committee and shall be referred to as an "Income Tax Incentive Program Agreement." For a Qualifying Enterprise to continue and remain in the ITI Program, it shall cooperate with the ITI Program Oversight Committee and the Treasurer, and shall supply the following to the ITI Program Oversight Committee and the Treasurer upon request:
(1) An annual progress report documenting the New Employees and payroll within the City;
(2) A copy of the Qualifying Enterprise's latest federal and state income tax returns; and
(3) Any other relevant information and documentation requested by the ITI Program Oversight Committee and/or the Treasurer.
(d) In addition to any duties and responsibilities set forth in division (c) of this section, the ITI Program Oversight Committee shall also:
(1) Review annual progress reports relative to the ITI Program;
(2) Recommend the continuation or non-continuation in the ITI Program;
(3) Adopt rules and regulations for the administration of the ITI Program not inconsistent with the terms and conditions of this chapter; and
(4) Present an annual progress report to Council relative to the ITI Program.
(e) All requests for any benefits or credits provided for within this section shall be subject to verification by, and the audit of, the Treasurer. The Treasurer may order an independent audit of a Qualifying Enterprise's employment, payroll, and tax records (at the expense of the Qualifying Enterprise) for purposes of administering or enforcing this chapter.
(Ord. 22-066. Passed 12-28-22.)