Girard, Youngstown differ on tax sharing from V&M project

YOUNGSTOWN — Youngstown and Girard officials are far apart when it comes to how much corporate-profit tax the two cities would share if V&M Star Steel decides to build a $970 million expansion facility.

“Tax sharing is the primary issue of concern,” said Youngstown Finance Director David Bozanich.

The corporate-profit tax is a “major obstacle” in getting a deal done between the two cities, said Girard Mayor James Melfi.

The issue is determining the average annual profit tax paid to Youngstown by V&M for its Martin Luther King Jr. Boulevard facility in that city, Youngstown and Girard officials say.

That amount needs to be determined in order to figure out how much additional revenue from the 2.75 percent tax would be shared if the new plant is built.

The lower the number, the more money Girard would receive.

The two cities are at least $625,000 apart on that average number.

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