We wanted to clarify a misunderstanding about an important aspect of a property tax abatement. It has been suggested that when a tax abatement is granted, the abated portion of the taxes is somehow allocated to other taxpayers in the taxing district; this is not the case. The other taxpayers are not required to pay additional taxes in order to “make up” for the data center project’s exempted taxes. Other taxpayers in a district have their own millage rates and are taxed accordingly. County Auditors have certain duties under Ohio law and do not have the freedom to raise property values or millages in order to generate revenues to offset an exemption. And even with an abatement, our project will broaden the tax base to the benefit of the community. And due to the significant assessed value of a data center project, the abated tax revenue will still provide more property tax revenue than any other use of the site would generate even without an abatement. No new project, including ours, has any effect on how other property owners in the county are taxed. The Village’s lawyer can confirm this.
In fact, the opposite effect is more likely, as a project such as ours generates significant property tax revenue broadening the tax base which lessens the likelihood that residents would need to pay additional property taxes to support a property tax recipient such as the fire district or the school district.
Key Takeaway: An abatement granted to the Perry Technology Park does not shift any tax burden to other property owners in the district. Other taxpayers are taxed under their own millage rates, and County Auditors have no authority under Ohio law to raise values or millages to offset an exemption. Even with an abatement, the project generates more property tax revenue than any other use of the site — broadening the tax base and reducing the need for new levies on residents.
The data center is a vital new revenue source to help prevent future tax levies!