The city of Centerville is representing Costco in appealing a ruling by the Ohio Department of Taxation — the latest act in a decade-long feud between the city and Sugarcreek Twp. over who should collect property taxes at the Cornerstone of Centerville property.
The appeal filed by Centerville Law Director Scott Liberman on Aug. 4 contests a decision that awarded the township more tax revenue than the city for years 2014 and 2015.
The fight stems back to 2006, when the former Dille Farm annexed from the township into the city using a process that left it under both governments’ jurisdictions. Costco now owns two parcels of the property and operates a store there.
Just before the annexation, the township created a Tax Increment Financing (TIF) district that allowed it to collect 75 percent of the tax increase from improvements to the property and set the money aside for infrastructure improvements there. The TIF went into effect in 2010 and was supposed to last until 2019.
But the city of Centerville created its own TIF in 2013, allowing it to collect 100 percent of the tax value increase for 30 years. The township tried to block the action in court, but the Ohio Supreme Court ultimately sided with the city.
The township killed its TIF in 2016, but this left it unclear which TIF was supposed to be in place for two years.
The Ohio Department of Taxation ruled in June that the township should get 75 percent of the TIF value in 2014 and 2015, and Centerville get 25 percent. The city then gets 100 percent each year thereafter.
Money collected under a TIF us supposed to be used for improvements on the TIF property.
Liberman said the state’s ruling would have no effect on an agreement the city entered into with local school districts on sharing tax revenue.
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