Tax Incentive Annual Review

The Ohio Enterprise Zone’s (OEZ) Annual Report was presented to Xenia City Council recently with recommendations from Greene County Tax Incentive Review Council.

When the Council agreed to Wal-Mart’s Superstore wishes, Wal-Mart dropped its sizable tax incentives, which means they didn’t have to pay us taxes. Thank you Wal-Mart.

Another profitable business has dropped its tax abatements. Barco Simulation asked that its two enterprise zone agreements be discontinued. Barco Simulation is a U.S. subsidiary of Barco of Beligium.

The city still has Enterprise Zone Agreements with the following ten companies:

1. Brown Publishing’s OEZ is 62% abatement of applicable real and personal property taxes.

2. CIL Isotope Separation, Inc. (Agreement #2) continues at 61% abatement of applicable real and personal property taxes.

3. CIL Isotope Separation, Inc. (Agreement #3) consists of a 65% abatement of applicable real and personal property taxes that may be eligible in the current tax year.

4. CRG has a 70% abatement of applicable real taxes that may be eligible in the current tax year.

5. Lowe’s Home Centers, Inc. receives a 50% abatement of applicable real taxes that may be eligible in the current tax year, contingent upon filing of DTE 23.

6. Ohta Press US, Inc. (OEZ Agreement #2) is a 45% abatement of applicable real and personal property taxes.

7. SAS Automation, LLC. (OEZ Agreement #1) is a 36% abatement of applicable real and personal property taxes.

8. Superion, Inc. (OEZ Agreement #2) is 40% abatement of applicable real and personal property taxes.

9. Twist, Inc. (OEZ Agreement #4) is 75% abatement of applicable real and personal property taxes.

10. Yoder Die Casting Corp has a 75% abatement of applicable real and personal property taxes.

Some readers might be asking whether those businesses that have been in operation more than 5 or 10 years should be given any tax breaks. Isn’t the purpose of a tax abatement to give new businesses time to grow a profitable business? Is a free ride really beneficial to the city i.e. citizen of Xenia?

It turns out that these businesses are not given a free ride. They paid
$265,365 in 2008 and were given OEZ tax breaks amounting to $116,009. As Mr. Brodsky pointed to Mayor Penewitt, the City “abated less than half the total amount collected on those agreements.”

I don’t know about you but I like the word a-bait-ment. I wonder who is baiting whom, really.

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