H.B. 59, the biennial budget bill that Gov. John Kasich signed into law on June 30, 2013, contained a little-noticed provision that may have a big impact on economic development in Ohio. Under a prior version of R.C. 3317.021, the state school funding formula considered the value of PILOTs (Payment in Lieu of Taxes) in determining the financial resources available within a school district. PILOTs are a common feature of tax increment financing (TIF) districts, whereby cities or townships that create TIFs offer school districts direct payments to replace taxes they might have received without the TIF. The budget bill, however, eliminated this consideration from the state school funding formula, effectively increasing the value of PILOTs to school districts with TIFs. For more, read the full text of H.B. 59.
Budget bill removes PILOTs from the school funding formula
