Lordstown schools offer to share taxes
Board deal splits money with village
LORDSTOWN — The Lordstown Board of Education will submit to village officials a proposal regarding sharing of the income tax from the General Motors battery-cell plant now under construction.
Earlier this year, village officials asked the Lordstown Board of Education to waive receiving income tax from any tax abatement request by GM for the battery plant. The Lordstown board in February tabled the motion on waiving income-tax sharing with the village, although the board did give approval to a community reinvestment agreement between the village and GM.
At Wednesday’s board meeting, members voted to send a proposal to the village on what percentage of income tax to share over the next 15 years, which is the life of the abatement.
The board decided that for years one through five, the village would receive 75 percent and the schools 25 percent of the income tax, with years six to 15 the village and the schools sharing the income tax 50-50.
Mayor Arno Hill and village officials previously asked the school district not to take any income tax even though the district is entitled to it. Anytime the village is involved in a tax abatement request of more than 50 percent, it is required to enter into an income tax-sharing agreement with the schools. The abatement is for 75 percent.
Board of education President Cheryl Kistler said projected income tax amounts of $400,000 to $450,000 annually would be shared with the village.
“We want to make a good-faith effort for the village with this offer,” she said.
Board member Jackie Woodward said a representative from the board should be invited to sit with council for any future negotiations for abatements so the schools have some say on them.
Hill said he has not seen the proposal yet.
“Once we see it, council will review it and will probably have an executive session at our next meeting to discuss this,” Hill said.
The amount at stake for the school district is about $225,000 each year. Hill said the school district would still get the property tax, which could be $600,000.
Officials said the battery-cell plant could bring 1,100 jobs with a payroll of $45 million, meaning $450,000 in income tax.
Hill said on Thursday that both the battery plant and TJX HomeGoods complex are under construction.
“It is awesome. People would not believe how the projects are moving forward,” he said.