City, Kettering schools to renew tax-sharing deal on business tax breaks

Kettering records show the agreement was established in 1995 and last used was in 2016. No deals now exist and none are planned, city and school district officials said.

“I think it’s just a tool in the toolbox if we would need it in the future,” Kettering Economic Development Manager Amy Schrimpf said.

“And there are other communities that have them in place. But fortunately for Kettering, we have other options to incentivize businesses to come here,” she added. “So, this is basically just making sure that we continue to have” it available if necessary.

Schrimpf said Kettering more commonly works with Montgomery County’s Economic Development/Government Equity (ED/GE) program and the Dayton Development Coalition for JobsOhio incentives.

The agreement includes job creation projects in enterprise zones, sharing income tax revenues 50/50 above the first $25,000 in income tax received, city records show.

Enterprise zones are designated areas of land in which businesses can receive tax exemptions on eligible new investment, according to the Ohio Department of Development.

“The enterprise zone was really popular many years ago” when items such as tangible personal property tax, equipment and inventory were eligible for tax breaks, Kettering schools Treasurer Cary Furniss said.

But it seems “like it’s a good agreement,” he added. “We should continue it.”

The measure before city council states Kettering wants to “work in a cooperative manner” with the school district “on all tax abatements involving new job creation to offset potential property tax revenue losses to the school district.”

The tax-sharing “will not be implemented for job retention agreements since there will not be any new income tax received by the city,” according to a draft of the agreement. “The maximum level of abatement for any job retention project will be 50%.”

The deal would end Sept. 30, 2027, unless terminated by mutual agreement, that document states.