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Dear Nikki McConnell,
Thank you for subscribing to the Ashland Economic
Development Newsletter.
Please note under Tax Reform, that the State is
requiring all Ohio businesses with taxable receipts of
$150,000 or more to register for the CAT tax by
November 15, 2005. See the State's website for
more information. www.tax.ohio.gov
| Cost Segregation Studies |
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by Jim Hess
What is a cost segregation study ?
It's a strategic tax tool that allows building owners to
reclassify the way they depreciate actual building
costs among real estate, land improvements, and
personal property categories. (This legitimate
reclassification is based on both case law and IRS
guidance.) The actual study is completed by
qualified construction engineers and estimators. The
net result is to accelerate depreciation from later
years to the earlier years of a project's life. This
accelerates the depreciation deduction, ultimately
improving cash flow.
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| Ohio Tax Reform |
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The following information was taken from the Ohio
Department of Taxation’s website.
The State of Ohio made several changes to its tax
law, effective July 1, 2005.
Some of the major components include:
SALES TAX – the state portion of the sales
tax rate will decrease from 6% to 5.5%.
INCOME TAX – the rate will be decreased
4.2% for all tax brackets for 2005 and an additional
4.2% (from 2004 rates) in each of the years 2006-09
for a total rate cut of 21%.
CORPORATE FRANCHISE TAX – this tax is
being phased-out over five years at a rate of
approximately 20% per year.
TANGIBLE PERSONAL PROPERTY TAX – this
tax will also be phased out through 2009. The phase-
out applies to most business and includes furniture &
fixtures, machinery & equipment and
inventory.
REAL PROPERTY – the 10% rollback is
eliminated for certain real property used in
business.
COMMERCIAL ACTIVITY TAX (CAT) – this tax
will be phased in over 5 years, eventually levying a
rate of 0.26% on gross receipts in excess of one
million dollars. Businesses with gross receipts less
than $150,000 will be exempt and businesses with
gross receipts between 150,000 and $1,000,000 will
pay a minimum tax of $150 Ohio businesses with
taxable receipts of $150,000 or more must register by
November 15, 2005.
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| Upcoming Regional Events |
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Health Care Summit
September 22, 2005
Companies throughout North Central Ohio are invited
to Ashland University’s Convocation Center on
September 22nd 2005 for this very educational
event. The Summit will feature three nationally
recognized speakers that are experts in the areas of
pharmaceutical care and organizational healthcare
savings. A catered lunch will also be served.
Speaker profiles and topics are listed below:
Click here for more....
Local Economic Development Councils Supporting
the
Ashland-Wayne-Holmes Employment Expo 2005
September 29, 2005
In the spirit of true regionalism, Ashland Economic
Development and the Economic Development Councils
in Wayne and Holmes Counties will host
the “Everybody Works” Employment Expo 2005 at the
Greenbriar Conference and Party Centre in Wooster,
September 29th 2005, 9 am—6 pm. This tri-county
area represents a Workforce Development Region
with offices in each county to serve job seekers and
employers. Services can be reviewed at
www.everybodyworks.net. The Employment Expo is
being planned as a first-class event for employers to
display information about their company as well as
make contact with over 500 prepared job seekers.
Invitations and registration information will be mailed
to area companies on August 22nd.
For more information click here
Impact Technology Summit
September 16,
2005
An Impact Technology Summit will be held on
September 16, 2005 in the Founders Auditorium on
the campus of the Ohio State University at Mansfield
and North Central State College. The Summit is
intended to start a conversation about the
importance of growing and attracting technology
based businesses and providing the appropriate
resources in North Central Ohio. This program is
directed at innovators, entrepreneurs, investors,
lenders, leaders and managers. Speakers
will discuss investment programs for early-stage
firms, the needed physical infrastructure, the role
education institutions can play in technology
commercialization and promoting economic
development through science and technology
programs and initiatives.
Ashland Economic Development encourages the local
business, public officials and service providers to
attend. See the link below for more information.
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| American Augers, Inc. awarded Exporter of the Year |
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American Augers in Jackson Township was recently
award the Governor’s Excellence in Exporting Award
(E-Award) and named Exporter of the Year. The E-
Award was established in 1985 to recognize Ohio
companies that have exemplary export programs.
Since 1994, one Ohio company has been
selected “Exporter of the Year” for its outstanding
growth in the international marketplace.
American Augers manufactures directional drills, mud
systems and auger boring machines. Export sales for
American Augers account for more business than
domestic sales. In 2004 the company manufactured
and delivered into China the largest directional drill
ever made. American Augers equipment is used in
the petroleum industry as well as in public utility
construction. The company says water and sewer
infrastructure needs major upgrades and
replacements worldwide. In Europe alone $1.5 trillion
will be spent over the next 20 years on upgrading
that infrastructure. American Augers will be a key
player with equipment designed to install that
infrastructure in congested and environmentally
sensitive areas.
Ashland Economic Development would like to
congratulate American Augers, Inc. for their excellent
exporting program and being awarded the “Exporter
of the Year”.
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Ashland Business Park Ground Breaking |
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Ashland Economic Development Director, Martin
Irvine, Mayor Bill Strine, County Commissioners Matt
Miller and Mike Welch
Ashland celebrated the groundbreaking of the new
Ashland Business Park on June 30, 2005. The event
was well attended and Ashland Economic
Development would like to thank all who attended
and helped to disassemble everything when the
weather turned bad.
The presentation began with an invocation by Pastor
Bouquet. Mayor Bill Strine then thanked a number of
people including the City employees, City Council, the
County Commissioners, Robert Mullen from
Congressman Regula’s office, Representative Bob
Gibbs, Senator
Harris, Jean Carter Ryan (the Deputy Director of the
Economic Development Division for Ohio Department
of Development) the Community Improvement
Corporation and especially Rex and Margret Riley for
their roles in making the project happen.
Next, Ashland County Commissioner Matt Miller
stated that the purchase and development of the
business park demonstrates vision and emphasized
that need for vision. He
also acknowledged that many community members
may wonder how we can afford to make this
purchase. Commissioner Miller stated “I fear if we
didn’t, we would pay for it 10 years from now”. He
also thanked the Township Trustees in attendance
for their support and cooperation and the Labor
community for their important role. Mr. Miller then
introduced Jean Carter Ryan.
Ms. Ryan stated that she was honored to attend and
present a grant award for $500,000. The Ashland
project was very highly ranked and received one of
the larger grants awarded. The grant evaluation
team looked at the proactive approach the
community was making. The team also evaluated the
community distress, feasibility of the project, the
implementation and marketing plans and ultimately its
job creation potential for Ohio. The Ashland County
application was ranked very strong in these criteria
and received a very large $500,000 grant. The State
recently partnered with Ashland by awarding an
additional $500,000 grant and $500,000 loan for the
purchase of the land.
Ms. Ryan read from a letter sent by State Senate
President, Bill Harris, who apologized for not being
able to attend. Senator
Harris stated “The project you are embarking on
today could serve as a model for the rest of the
State of a community that is not just waiting idly for
opportunities to come along. Instead, Ashland is
working with neighboring communities and the State
to take an active role in creating new jobs and
encouraging commerce for its people and its
future.”
Martin Irvine, Economic Development Director
thanked everyone for coming and eliminated his
comments as the weather started to turn bad. The
people in attendance started to leave for their
vehicles as a canopy that initially shielded the sun
started to blow away. Several community members,
City employees and elected officials caught the
canopy, gathered the equipment and materials for
the groundbreaking and quickly loaded them into
nearby vehicles. Commissioner Miller commented that
it exemplified how the Ashland community works
together.
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