Townships don't collect income tax and share property tax revenues with the county and other important agencies. But townships are permitted to establish special districts which serve as important economic development tools to attract new corporate investors and help shift the burden of funding necessary services away from the individual taxpayer.
Tax Increment Financing
Tax Increment Financing Districts are geographic districts established in commercial areas throughout the Township. Property owners within these districts volunteer to make "payment in lieu of taxes" -- the same amount they would have paid in property taxes on appreciated values -- to a TIF Fund. In TIF Districts created after 1994, local school districts and the Township have negotiated terms to ensure each receives an appropriate share of the "payment in lieu of taxes" generated by the new development within the district.
Tax increment financing dollars can be spent on infrastructure improvements, amenities and critical services directly impacting the district from which the funds were collected. In West Chester, TIF funds have been used for various public improvements including road improvements in the Union Centre area, construction of West Chester Fire Headquarters and Fire Station 71, acquisition and renovations of the West Chester Safety Services Center/Police Department and construction of amenities such as the West Chester Library.
West Chester first employed TIF during the construction of the Union Centre Boulevard interchange in 1997.
Joint Economic Development District
A Joint Economic Development District (JEDD) allows a township to diversify its revenue stream by partnering with a municipality to collect income tax from a geographically limited property within the community. A JEDD is designed to encourage cooperation among local communities, to enhance development opportunities, mutually benefiting the economic vitality of each area.
West Chester Township has partnered with the City of Fairfield (and the City of Springdale on a more limited basis) for a Joint Economic Development District on approximately 43 acres at the northwest corner of Cincinnati-Dayton Road and Union Centre Boulevard.
Within the set geographic boundaries of the JEDD, an income tax is administered and collected by the District, with administration through the City of Fairfield. As a Township, West Chester has no taxing authority on its own. West Chester receives a portion of this income tax, as does Springdale and Fairfield, based upon the details of a negotiated agreement with the parties involved. A JEDD Board with representation from each of the partners oversees the JEDD.
Some frequently asked questions about the JEDD in West Chester:
Is there an income or payroll tax in West Chester?
As a Township, West Chester does not assess an income or payroll tax. Individuals working within the Township's limited Joint Economic Development District (JEDD), however, are assessed an income tax by the District. A percentage of the tax collected within the JEDD is dispersed to West Chester. The JEDD area is approximately 43 acres of property located on the northwest corner of Cincinnati-Dayton Road and Union Centre Boulevard.
What if I work in the JEDD?
If you work within the geographic boundaries of the JEDD, you will be assessed a 1 percent earnings tax. The tax will be charged by the City of Fairfield. http://www.fairfield-city.org/tax/jedd.cfm.
How do I obtain public documents associated with the JEDD?
The City of Fairfield maintains most records associated with tax collection/revenue/expenses of the JEDD in West Chester. As a partner in the JEDD, the City of Fairfield plays the role of administrator. To request public records associated with the JEDD, contact Fairfield's finance director at (513) 867-5313. To request public records that may be in the care of West Chester Township, email Aaron Wiegand or (513) 759-7226.
How may I view West Chester's JEDD agreement in its entirety?
The JEDD contract [PDF] is available to view online.
A brief synopsis of the JEDD agreement [PDF] is also available online.