Week in Review: March 3, 2024

AUTOMOBILE INDUSTRY

The DeWine administration announced Monday that Schaeffler, a global manufacturer of high-precision components and systems for engines and transmissions, will establish a new manufacturing facility in Dover to produce beam axles and drivetrain systems for the hybrid and electric vehicle (EV) industry. This builds on its existing manufacturing facility in Wooster and an automotive aftermarket operation in Strongsville. Schaeffler will be creating 650 new jobs between the Dover and Wooster facilities, bringing $54 million in new payroll. The company is also making over $230 million in fixed-asset investments and retaining 1,622 current jobs, with $134.8 million in associated payroll. It received a 15-year Job Creation Tax Credit with an estimated value of $17.5 million.

ECONOMIC DEVELOPMENT/URBAN REVITALIZATION

Gov. Mike DeWine's administration announced Monday the approval of assistance for eight projects expected to create 1,171 new jobs and retain 3,635 jobs statewide. During its monthly meeting, the Ohio Tax Credit Authority (TCA) reviewed economic development proposals brought by JobsOhio and its regional partners. The projects are expected to collectively result in more than $101 million in new payroll and spur $269 million in investments across Ohio.

HOUSING/HOMELESSNESS

The Ohio Housing Finance Agency (OHFA) will take applications until 4 p.m. Friday, April 5 for a new tax credit program created in the biennial budget to spur single family housing development. Under HB33 (Edwards), the Single Family Tax Credit Program provides $50 million per year for four years to encourage increased construction or rehabilitation of single family dwellings. To qualify, projects must include at least five dwellings to be built or rehabilitated, each including at least two bedrooms and 1.5 bathrooms, among other criteria. More information about the program is at https://tinyurl.com/mry4ctut.

Ohio saw 7,547 home sales in January, a 4.4% increase from 7,229 seen a year earlier, according to Ohio Realtors. The average sales price, at $254,943, was up 7.4% from January 2023's average.

TAXATION

A veteran of Ohio tax administration told the General Assembly's property tax study panel Wednesday that the flagship policy for preventing spikes in tax bills no longer works well. The Joint Committee on Property Tax Review and Reform hearing included testimony provided by experts at Zaino Hall & Farin, including former Ohio Department of Taxation (ODT) Commissioner Tom Zaino, former Senate majority budget director Brian Perera and tax attorney Stephen Hall, former ODT assistant counsel. Zaino said that HB920 of the 111th General Assembly, enacted in 1976 to prevent large run-ups in property values from driving proportionate property tax increases, isn't achieving its intended purpose anymore because of school districts' ability to seek voted millage not subject to HB920 limitations. "Based on research and available data, we believe school districts have done their own type of 'tax planning' by utilizing levies that have been enacted over the last 48 years but which are exempt from HB920. As a result, HB920 is broken. We will show why HB920 is broken and why it no longer works to protect Ohioans from inflationary increases in property taxes," Zaino said.

TECHNOLOGY/AEROSPACE

Lt. Gov. Jon Husted told Hannah News Thursday artificial intelligence (AI) is expected to create a "huge demand" for semiconductor chips in the coming years, saying that is part of the industry's expected growth from $500 billion to $1 trillion according to McKinsey. He added Intel's Ohio facilities will likely help meet the need for increased capacity once it is completed, noting the company recently signed a $15 billion deal to make chips for Microsoft. Intel also announced Thursday it had launched a standalone company, Altera, whose work will include AI efforts.

TRANSPORTATION/INFRASTRUCTURE

The Transportation Review Advisory Council (TRAC) Wednesday signed off on 18 major transportation projects in 13 counties at the cost of $127.3 million over the next four years. The council had released the list of projects earlier this month for public comment, narrowing down 28 submissions to 18. On Wednesday, TRAC approved the final list. According to the Ohio Department of Transportation (ODOT), the list includes $21 million in new construction funding, $35.5 million in additional funding for construction, $33.4 million in new funding for preliminary engineering, and $28.4 million in additional funding for development of projects.

WORKERS’ COMPENSATION

The Ohio Bureau of Workers' Compensation (BWC) Board of Directors approved a 7% premium rate reduction for private employers on Friday, Feb. 23. The state's private employers will save nearly $67 million as a result of the board's action, according to BWC. The BWC Board approved an 8.6% rate cut for state agencies during its last meeting.

WORKFORCE

The Ohio Department of Job and Family Services (ODJFS) recently released data for openings posted on OhioMeansJobs.com from Dec. 14, 2023 through Jan. 13, 2024, saying there were 179,412 during the period. That reflected an increase of 2,166 from the previous period and a decrease of 11,642 from the same time-period one year ago. Salary ranges for the postings included 13.4% under $30,000; 29.2% $30,000 to $49,000; 26.8% $50,000 to $79,000; 12.1% $80,000 to $99,000; and 18.4% over $100,000. A GED or high school diploma was required for 44.4% of postings, while 35% needed a bachelor's degree, 14.4% needed an associate degree and 6.3% needed a master's or doctoral degree.

This feature was provided by Hannah New Service and selected for you by OSCPA Government Relations Staff.