2026-007 Resolution - Laserfiche WebLink

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"Tax Agreement"). The Tax Agreement shall authorize the City to delegate administration of the income tax of the District (the "Administrator"), to the Regional Income Tax Agency ("RITA"), who shall he responsible for the receipt, safekeeping and distribution of the income tax revenues collected within the District. The City will continue to receive one hundred percent (100%) income tax revenue collected from any North Olmsted City residents, including those who may be employed or work within the District. In addition, any upfront investment or annual cost from either party paid to secure a CEDA, JEDD, or any other agreement will be reimbursed prior to the City paying to the Township its share of any remaining income tax collected by the City in the Township. The City has passed a tax levy, effective , that fixed the income tax rate at two percent (2%) per annum. Commencing on the effective date of a resolution adopted by the Board levying an income tax, the parties agree that in regard to the 2% income taxes collected from within the District, such taxes shall be split, with the Township receiving revenue equal to 410A 1.5%of the income and net profits of businesses earned within the District, income of employees working within the District, and income of persons residing within the District, with the City receiving revenue equal to 444- .5% of the income and net profits of businesses earned within the District, income of employees working within the District, and the income of persons residing within the District. In each case the amounts that are to be received by the parties will be reduced by all credits, refunds and any amounts that are to be paid to any business located within the District pursuant to any tax credit or economic growth initiative agreement between the business or businesses and the City. The rate of the income tax shall change from time to time so that it is equal to the rate of the income tax levied by the City. The revenues of that income tax shall be used for the purposes of the District and the contracting parties pursuant to this Contract. In the event the tax rate levied by the City is subject to increase, the receipts from such increase shall be distributed proportionally, in accordance with the formula expressed in this Contract. To the extent that the District's expenditures authorized hereunder for any fiscal quarter exceed the District's share of revenues of the District income tax, such excess expenditures shall be borne and paid by the City and Township in the same proportion as the income tax split set forth above in this Section of this Contract. The Tax Agreement shall provide that the Administrator shall make a quarterly report to the Board regarding the receipt and distribution of the income tax of the District and the operating income and expenses of the District for the preceding quarter and projections for the next quarter. (C) Challenge to Income Tax: The parties acknowledge the owner of a business on behalf of the business and its employees on or before the date occurring six (6) months after the effective date (as defined in Section 22 hereof) of this Contract may file a complaint with the court of common pleas of the county in which the majority of the Property of the District is