2018-090 Resolution - Laserfiche WebLink

Home Browse Search

R.C. 6G5709.40 and 5709.41. The limitations provided in subsections (a) and (h) of this Section 6ShaU not apply to business relocation from outside of the territorial boundaries of the District as defined in Section 3ab0v8. Section 7. Income Tax Sharing for Moves Within the District. /a\ The Parties agree that if any business with an annual gross payroll of more than $500,000 relocates from one Party (the "Losing Party") to another Party (the "Gaining Party"), the. L06/ng Party shall be entitled to receive from the Gaining Party, for period 0f5 years, 50 percent Offuture |D[0nOe tax revenue based upon payroll in existence immediately prior to the re|0cObnD. The Gaining Party's 50 percent share shall be calculated based upon the Gaining Party's employment -based tax rate as may be amended from time hJtin0e, minus the percentage that may be earmarked for J city/village's school district pursuant to city/village ordinance, The Gaining Party's 5 year income tax sharing obligation for any business that relocates during the term Of this Agreement is 3 continuing obligation that shall Survive the termination of this Agreement. (b) The 5 year tax sharing obligation may be earlier terminated or reduced if the Losing Party "backfills" SpdC2 at the Sdnn9 payroll value with a similar business, as follows: (i) the business that moved j0hS adds equivalent new payroll anywhere in the Losing Party's jurisdiction, this new payroll shall qualify as "backfi||''for purposes of this Section 7; and (ii) if the moving business r8p|d[eS part of the vacated space with new ]ObS and payroll, the aggregate 8nnp|Oyment'based income tax paid to the Losing Party will be deducted from this tax sharing obligation. Upon becoming aware that "ba[kfi||ing''has occurred, the Losing Party shall provide the Gaining Party with VV[itt8O notice within 3Odays OS provided for iO Section 20. For example, if new employees are hired anywhere in Cleveland by the relocated employer, the Snnp|Oynnent'based income tax from those employees that is paid to Cleveland shall reduceLhe amount to be paid by to Cleveland in an amount equal to the e0p|0y0ent based income Lax paid by or On behalf of those employees. For purposes of the above example, ~nevv" Cleveland employees are permanent employees who are hired due hothe creation of new positions within Cleveland versus new or existing employees that are hired to fill existing vacant positions created hvemployee turnover, retirement, Orother reason. Section 8. Administration of Agreement. (a) After execution ofthis Agreement, Parties may provide that the incometax sharing provisions in this Agreement be administered jointly by and Cleveland, or by either the Central CO||2[bon Agency, Regional Income Tax Authority, or both. The administrator will be responsible for collecting annual employment and income tax data frorn a relocating business, calculating the aggregate employment and payroll, determining the annual inCDno2 tax to be shared and determining if the agreement should be terminated due to occurrence of any of the triggering events. (h) Iffor any reason arelocating business isunable orunwilling h}provide the payroll inh)nnaU0n necessary to make the tax sharing calculations specified in Section 7, the Parties agree UV confer in good faith to determine an appropriate alter -native calculation. Section 9. Access to Records; Audit. During the tax sharing period provided in Section 7, and Cleveland ShO|| provide access tOthe other Party's tax withholding and estimated tax records related to the relocating business during normal business hours. Either Party, through its representatives 0remployees, shall be permitted to make and keep photocopies of portions of the other Party's records that pertain to such tax withholdings and estimates. Once ayear, both