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        Will the Nexus pipeline project be a revenue windfall for school districts and local governments along its 255-mile route?

        With a tax issue on the May 8 ballot, the Gibsonburg school administration is cautioning voters in the district to not look at the pipeline as a financial savior for the school system.

        Tim Murray, school superintendent, after a discussion with the Sandusky County auditor’s office, said he still has questions about how much the pipeline will generate in tax revenues and when they will be distributed.

        Adam Parker, a spokesman for Nexus, said it expects the pipeline, which will wind from southeast Ohio into Michigan, to be operational by late in the third quarter of this year.

        “Natural gas pipelines are subject to an ad valorem tax in Ohio based on the Ohio Revised Code,” he said. “Ad valorem taxes are paid annually while the pipeline is in service. The tax is largely based on the value of pipeline in each taxing district.”

        But Murray said the auditor’s office told him it hasn’t received any information from the state as to when the tax revenues will start flowing.

        Tax estimates prepared by Public Finance Resources in June 2016 show Gibsonburg schools receiving about $5.4 million over the first five years the pipeline is on the tax rolls.

        However, valuations on which the taxes are based can be appealed.

        Murray said the auditor told him the office doesn’t have actual valuations or a completion date yet for the pipeline.

        Murray said he’s also wary of the amount after conferring by phone with the auditor in Medina County where four districts would share tax revenues from the pipeline.

        “He believes we will not see the majority of this money, and, if we do, our state funding will be reduced to offset the increase,” Murray said.

        On April 28, Gibsonburg residents who are members of the Citizens for Better Schools, canvassed the village with information about the 1 percent income tax levy that will be on the ballot next week.

        Although voters will see the 1 percent figure on the ballot, a current 0.75 percent tax is expiring at year’s end.

        Danielle Mason, a member of the committee, said she and others are concerned voters are feeling complacent about the district’s finances because of the pipeline and the construction of the Standard Wellness, LLC, medical marijuana facility in the village.

        Voters in the district rejected a 1 percent income tax levy last November.

        In the neighboring Woodmore School District, where voters will decide a renewal 3-mill, 5-year permanent improvement levy, the administration is advising residents the district doesn’t expect to see revenues from the pipeline until 2020 or later.

        The projection by Public Finance Resources estimates Woodmore schools will receive about $5.3 million over five years.

        “We will continue to monitor progress on the pipeline and assess our budgets as information becomes available,” a newsletter about the levy says.

        Jason Mumma, of the Ohio Department of Taxation, said 2020 would likely be the earliest districts receive tax revenues from the pipeline.

        “If the Nexus pipeline is placed in service this year (2018), initial tax revenues collected and disbursed by the county to the school districts will occur in February 2020, as based upon the assessed values we will certify in October of 2019. We do not know what the valuation will be until the company files the annual report with us, and the earliest that will be is a year from now, in April, 2019,” he said by email.

 

 

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Do you agree with the Supreme Court ruling that the Colorado baker did not have to prepare a cake for a gay wedding?
1039024007 [{"id":"259","title":"Yes","votes":"38","pct":55.88,"type":"x","order":"1","resources":[]},{"id":"260","title":"No","votes":"28","pct":41.18,"type":"x","order":"2","resources":[]},{"id":"261","title":"No opinion","votes":"2","pct":2.94,"type":"x","order":"3","resources":[]}] ["#194e84","#3b6b9c","#1f242a","#37414a","#60bb22","#f2babb"] sbar 160 160 /component/communitypolls/vote/96-baker No answer selected. Please try again. Thank you for your vote. Answers Votes ...