(a) Beginning with and for the taxable year 2010 or a fiscal year beginning in 2010, and for each taxable year or fiscal year thereafter, there shall be, and is, a Warren City Income Tax Incentive Program for that portion of the City of Warren not located within the Downtown Business District (i.e. the “ITI Program”) as set forth within this section. The purpose of this program is to encourage and promote economic growth within that portion of the City of Warren not located within the Downtown Business District by encouraging and promoting business expansion efforts and the establishment of new businesses within that portion of the City of Warren not located within the Downtown Business District.
(b) As used in this section, the following words shall have the meanings ascribed to them in this section except as and if the context clearly indicates or requires a different meaning:
(1) “Downtown Business District” and “DBD” each mean the area located within the City of Warren, County of Trumbull, and State of Ohio, and further bounded and described as follows:
Beginning on Main Ave., SW at the Mahoning River, proceeding west to the rear property lines west of Main Ave., SW, proceeding north along said property lines to the rear property lines south of South St./U.S. 422, proceeding west along the south property lines across Tod Ave., SW to the rear property line west of Tod Ave., proceeding north along the rear property lines along Tod Ave., crossing Summit St. NW to the rear property line, proceeding east-northeast along the railroad and the rear property lines along the north side of Summit St., NW, then continuing along the rear property lines along the north side of Atlantic St. NW and Atlantic St. NE, crossing Paige Ave. NE to the rear property line, proceeding south along the rear property lines on the east of Paige Ave., crossing Elm Rd. NE, continuing south along the railroad east of Elm Rd. NE to Warren Blvd., then proceeding due South to a point on the rear property line of Oakwood Cemetery at the railroad, proceeding due west to the Mahoning River, proceeding along the Mahoning River to Main Ave. and the point of beginning.
(2) “New employee” means an employee hired or employed by a qualifying enterprise to perform work or render services within the City of Warren and/or transferred by the qualifying enterprise from another location into the City of Warren.
(3) “Related enterprise” means an enterprise that shares a relationship with a qualifying enterprise in that twenty-five percent (25%) or more of ownership interests in both of said enterprises are the same.
(4) “Qualifying enterprise” means a sole proprietorship, partnership, corporation, limited liability company, enterprise, business, employer, or other like entity that starts or expands a place of business within the City of Warren but outside the DBD and hires at least one new employee for that place of business.
(5) “Qualifying investment” means an investment in real or personal property within the City of Warren but outside the DBD, for business purposes, having a useful life of at least five (5) years, or inventory available for resale within the City of Warren but outside the DBD.
(c) The payments, terms and provisions hereafter discussed within this division (c) shall be, and are, collectively deemed to be the “General Property Investment Compensation Program” of the City.
The City shall provide a yearly rebate payment to a qualifying enterprise equal to the percentage, as determined by the “Employment and Investment Formula” set forth at the end of this division (c) [which begins with a base of twenty (20) percentage points and adds percentage points thereafter] of the net income tax withholding of the new employees 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 (c). The term of the 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 (c) shall be made on or before April 1st of the first calendar year following the taxable year or fiscal year in which the qualifying enterprise becomes eligible for the payments provided for within this division (c); each yearly rebate payment thereafter per this division (c) shall be made on or before April 1st of the calendar year.
To be eligible for the tax benefits provided for within this division (c), 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 (e) of this section.
Employment and Investment Formula
(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 (4) Qualifying Investment in Real Property
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/space has been vacant over 6 If building has been vacant for 6 months -
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 | Public Sector Over 50% | 0 |
400,001.00-700,000.00 | 10 | ||
$700,001.00 & Over | 12 |
POINTS = %
BASE = 20%
MAXIMUM = 97%
(d) The credits, terms and provisions hereafter discussed within this division (d) shall be, and are, collectively deemed to be the “General Net Profit Credit Program” of the City.
In addition to any benefits provided for within division (c) of this section, the City shall provide a yearly credit to a qualifying enterprise equal to the percentage, as determined by the “Employment and Investment Formula” set forth at the end of division (c) 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 within this division (d). For purposes of the preceding sentence, however, “the net profit tax liability” shall mean, and does 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 or fiscal year for the remaining five (5) calendar or fiscal years. A credit per this division (d) shall require the paying of the net profits tax generated by the qualifying enterprise, net of refunds.
To be eligible for the tax credit(s) provided for within this division (d), a qualifying enterprise must: make a qualifying investment of at least one hundred and fifty thousand dollars ($150,000.00); and apply for said credit and execute an agreement therefor in accordance with division (e) of this section.
(e) In order for a qualifying enterprise to be eligible for any benefits or credits provided for within divisions (c) and/or (d) of this section for the taxable year 2010 or for a fiscal year beginning in 2010, the qualifying enterprise shall apply for same on or before March 1, 2011 by completing an application therefor to be prepared by the Tax Administrator. In order for a qualifying enterprise to be eligible for any benefits or credits provided for within division (c) and/or (d) of this section for taxable years after 2010 or for fiscal years beginning after 2010, the qualifying enterprise shall apply for same (within sixty days after starting or expanding a place of business within that portion of the City of Warren not located within the DBD and having at least one new employee for that place of business begin work or service) by completing an application therefor to be prepared by the Tax Administrator. Any application provided for within this division (e) shall, among any 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 within this division (e) shall be reviewed by, and approved or disapproved by, the committee known as “the ITI Program Oversight Committee”. Said “ITI Program Oversight Committee” is the same committee established and provided for by Section 171.153 of the Codified Ordinances of the City of Warren.
Once an application is approved by the ITI Program Oversight Committee, a written agreement therefor shall be made and entered into by and between the City and the qualifying enterprise. Any such agreement shall, among any other things, set forth, and be conditioned upon: the estimated and proposed number of new employees; the estimated and proposed amount of qualifying investment(s); the estimated and proposed amount of compensation to be paid to new employees; the estimated and proposed amount of General Property Investment Compensation Program rebate payments and/or the estimated and proposed amount of General 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”.
In order for a qualifying enterprise to continue, and to remain, in the ITI program, it shall cooperate with the ITI Program Oversight Committee and the Tax Administrator, and shall supply to the ITI Program Oversight Committee and the Tax Administrator the following upon request:
(1) An annual progress report documenting the new employees and payroll within the City of Warren but outside the DBD; and
(2) A copy of the qualifying enterprise’s latest Federal and State income tax returns; and
(3) Any other relevant information and documentation as requested by the ITI Program Oversight Committee and the Tax Administrator.
(f) In addition to any duties and responsibilities set forth within division (e) of this section, the ITI Program Oversight Committee shall also:
(1) Review annual progress reports relative to the ITI Program; and
(2) Recommend continuation or non-continuation in the ITI Program; and
(3) Adopt rules and regulations for the administration of the ITI Program not inconsistent with the terms and provisions of this section; and
(4) Present an annual progress report to City Council relative to the ITI Program.
(g) All requests for any benefits or credits provided for within this section shall be subject to verification by, and the audit of, the City Treasurer. The City 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 section.
(h) Any person dissatisfied with any ruling or decision of the Tax Administrator, the City Treasurer or the ITI Program Oversight Committee made under authority conferred by this section may appeal therefrom to the Board of Review within thirty (30) days from the announcement of such ruling or decision. Any such appeal shall be subject to the provisions of Section 171.13 of this chapter.
(Ord. 12514/14. Passed 1-22-14.)