Tax Structure & Incentives
Morrow County, Ohio
Enterprise Zone Program.
The Enterprise Zone Program is a tax exemption program which provides for abatement of real and tangible personal property taxes, for new improvements to land and structures, and for new machinery and equipment. The Village of Mount Gilead, Cardington, Edison, Marengo, Fulton, Chesterville and portions of Morrow County all utilize the Enterprise Zone Program.
Throughout the Morrow County Enterprise Zone area, incentives can be up to a 50% exemption of the value of new real and/or personal property for up to 10 years. The exemption level can be exceeded under special circumstances with school board approval.
All Enterprise Zone exemptions are granted on a project specific basis and agreements are negotiated between a city or county and the business via an Enterprise Zone Negotiating Committee. The committee is comprised of city townships, county and/or school board officials. The Enterprise Zone Agreement spells out the exemption percentages, time limits, and contains other requirements dealing with job creation, job retention, and minimum investment amounts.
Tax Increment Financing (TIF) is a method of funding public improvements in an area slated for redevelopment by recapturing for a period of no more than 30 years (all or a portion of) the increased property tax revenue that may result if the development stimulates private investment.
For example, a local government may install roads or sewer and water lines in a vacant industrial area and then finance their installation with the recaptured tax increment. The tax increment is created from the tax revenue generated by the increased value of the land adjacent to the new improvements and the value of any new structures built in the industrial area.
For more information on any of the above programs contact Shane Farnsworth at
email@example.com or 419-947-7535.
Tax Increment Financing.
Community Reinvestment Area
Community Reinvestment Areas (CRA) are areas of land in which property owners can receive tax incentives for investing in real property improvements. The CRA Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings.
Municipalities or counties designate Community Reinvestment Areas in locations where investment has been discouraged and it is hoped that tax incentives will encourage revitalization and development and can grant up to a 100% real property tax exemption on new improvements or structures.
The Ohio Revised Code sets limits on the length of time for which an exemption can be granted:
• Up to 10 years for residential remodeling (2 units or less; minimum $2,500.)
• Up to 12 years for residential multi-family (more than 2 units) or commercial and industrial remodeling (minimum $5,000.)
• Up to 15 years for new construction of residential, commercial, or industrial uses.
The city or County, through an ordinance or resolution, sets the exact time limits, which can be less than the limits noted above. Tax exemptions for commercial and industrial projects are required to be negotiated on a project specific basis, and payments to local schools may be necessary to compensate for lost tax revenue depending on the size of the project and the terms of abatement desired by a business. Also, projects with a new annual payroll of $1,000,000 or greater and located within a municipality must meet the income tax sharing requirements agreed upon between the city and the local board of education.