Wednesday, October 19, 2005
Area schools receive a share of the company's personal property taxes.
By ED RUNYAN
VINDICATOR TRUMBULL STAFF
WARREN -- Trumbull County will send a letter to the struggling Delphi Corp. with suggestions for saving the company money on taxes.
No. 1 on the county's list of ideas is to try to find a way to eliminate about $3.2 million in personal property taxes for Delphi's Packard Electric facilities in Trumbull County, said Alan Knapp, county planning commission director.
The state budget last year began the process of eliminating those taxes over four years and replacing them with the so-called Commercial Activity Tax. Knapp said that with the help of the state Legislature, maybe personal property taxes on equipment and inventory for Delphi can be scaled back even more quickly than four years, he said.
Legislators' aid
State Rep. Randy Law of Warren, R-64th, said he has already started working with the office of Ohio House Speaker Jon Husted, of Kettering, to discuss what the Legislature can do to help the company. Kettering is near Dayton, which also has Delphi plants.
Law said U.S. Rep. Tim Ryan of Niles, D-17th, held an informational meeting in downtown Youngstown on Monday to give local and state officials more information on bankruptcy as it relates to Delphi.
Law said the session was attended by state Rep. Sandra Stabile Harwood of Niles, D-65th; Ohio Sen. Robert F. Hagan of Youngstown, D-33rd; Trumbull County Commissioner Daniel Polivka; Cortland Mayor Curt Moll; township officials; labor union representatives; and representatives from the Regional Chamber.
Ryan and U.S. Rep. Ted Strickland of Lisbon, D-6th, are establishing a coalition of U.S. House members with Delphi Corp. operations in their districts to see what can be done to help the company.
County's letter
Knapp said Trumbull County's letter to Delphi will summarize efforts made on its behalf in the past. One example, Commissioner James Tsagaris said, is extension of utilities to the company's research facility on Research Parkway in Champion, and help at the Delphi Packard Electric North River Road facility in Warren as well as the plants in Cortland and Vienna.
Knapp said the type of tax abatement companies usually receive, an "enterprize zone," won't be available to Delphi -- because these are for companies that are expanding.
"The main thing is we need to let the company know we are willing to help," Knapp said. He recalled that the county did something similar years ago to remind General Motors of help it had given the automaker in Lordstown in the past and to offer help in landing the J-car platform. The company and county then worked together, he said.
After the initial letter goes out to Delphi, the county planning commission staff will follow it up with additional suggestions, Knapp said.
Impact on schools unclear
Knapp said it is not clear whether lowered personal property taxes for Delphi Packard Electric, which are distributed to eight local school districts, would result in dramatically lowered revenue for those school districts.
School districts that receive money from Delphi's plants are (in annual figures): Howland: $1,892,474; Lakeview: $740,075; LaBrae: $286,872; Warren: $157,182; Mathews $156,112; Champion: $111,270; Liberty: $997; and Niles: $468.
At the time the state's budget bill was approved this summer, the Legislature assured officials that local entities would be "made whole" for the first four years by the gradual elimination of personal property taxes, meaning they would not lose revenue because of the change.
Area school officials have previously said they are skeptical that replacement revenues will be forthcoming.
Another idea to help the company could come in the form of lowered real property taxes. Last year, the company paid $781,000, the Trumbull County Auditor's Office said. Because of the recent reappraisal done by the county, these taxes will probably rise because of increased property values. Knapp said he hopes these taxes could be lowered, too.
runyan@vindy.com