Groveport keeping an eye on city income tax revenues

0
821

By Rick Palsgrove
Southeast Editor

The city of Groveport’s income tax revenues are down slightly for the year.

According to the city’s August 2018 Income Tax Revenue Report, the city’s income tax revenues of $11.5 million collected so far this year are down 5 percent compared to this same time in 2017.

“Actually the 5 percent decrease from last year is a smaller percentage than it was last month,” said Groveport Finance Director and Assistant Administrator Jeff Green.

Earlier this year the state took over the centralized collection of business income taxes through its Ohio Business Gateway. Under the state’s control, the centralized system collects business income taxes and then distributes tax receipts to the intended municipalities. Municipalities, seeking to maintain local control, fought the state’s plan in court, but the state prevailed.

In June, Green noted the state is running about two months behind in disbursing the revenue to municipalities.

“Yes, we believe the state’s centralized collection is partly to blame, but we don’t yet know the extent,” said Green of the city of Groveport’s decrease in income tax revenues for this year. “Also, over the past two to three years, we received two or three large estimated tax payments from local companies that we didn’t receive this year.”

Green said the city is monitoring the revenue situation.

“This is something we’re still researching and keeping our finger on,” said Green. “The situation is not dire, but it is concerning. Still, it’s a little too early for me to comment as to the exact cause.”

According to a information from the governor’s office, the benefits of the state’s centralized collection of business income taxes are: uniformity and simplicity with one return, one place to file, one set of rules, and one audit rather than various sets of rules and filing requirements from various municipalities; and reduced cost of compliance, bookkeeping, paperwork and red tape.

Commercial development news
The Spanish textile company Fluvitex, which is an exclusive supplier of linens and bedding to Ikea, will open a factory in Groveport in October at the corner of Rohr and Pontius roads.

“At launch, the company is expected to employ 80 workers with another 120 to be added over three years,” said Green.

He said the average annual wage for the jobs is expected to be $56,350.

“Their local investment is projected to be $4.13 million, mostly in machinery and equipment for the 124,000 square foot space they are leasing,” said Green. “This is a great project for Groveport because it’s another step in diversifying our economic core and adding more manufacturing and higher-paying jobs to the mix.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.