Rip Off?

DHL Abatement

You Be The Judge

In 2004 DHL (the company) offered to purchase, what is now known as, Wilmington Airpark with plans to expand the facility. As an incentive to make the deal more attractive the Clinton County Commissioners offered a property tax proposal that would exempt for seven years, all property taxes for new construction.

The state laws governing this type of abatement are rather complex but the basics are:

a.      The local school district has no voice in the abatement even though the district had the most to lose. (over 50% in lost revenues).

b.     When the new construction is completed the company will apply to a Commissioner appointed housing officer to certify to the county auditor that the new facility is cleared for the exemption.

c.      Ohio Law 3735.67(D): “The tax exemption shall first apply in the year following the calendar year in which the certification is made to the county auditor.”

The building projects were completed in 2005, however, the company did not apply to the housing officer for the more than $600,000 exemption. As a result the company had to pay a portion of property taxes due for 2005 in 2006.

After again failing to request certification in 2006 the company finally made an official post construction request to the housing officer on February 19, 2007 for certification and was certified to the auditor on May 7, 2007.  In accordance with (c) above the abatement should have applied in 2008 and taxes paid for 2007.

For an unexplained reason the housing officer added a statement to the certification “commencing in 2006”. The auditor asked for a legal opinion and was advised to complete the exemption as of 2006. This variance from the statute cost the county treasury the aforementioned $600,000 for tax year 2007 payable in 2008. 

During 2008 this writer pressed the commissioners and the Wilmington schools administration to take action to recover the funds but no action was taken by either entity.

That same year the company decided to leave the county without being billed for or paying the taxes due.

Not only did the school district loose the $300,000 then due but also an additional $650,000 per year as a result of the Port Authority’s need to apply for an exemption in order to reduce its tax burden in order for the Airpark to survive financially.

The above narrative is as factual as the public information is fact.

Paul Hunter paulhunter45177@gmail.com