Huron Board of Education candidates say if tax abatements should be given out

HURON – The Huron Board of Education candidates told Huron Insider about if they think the board should give out tax abatements. A tax abatement is a reduction in or the exemption of taxation for an individual or, more often, a business.

This was one of seven questions on a questionnaire that all of the candidates responded to. Huron Insider will be posting one of the questions along with the responses each night this week (August 15-August 21). These articles can be found here.

The Huron Board of Education candidates are John C. Adams, Sherry Catri, Stacey Hartley, Ryan Hathaway, Stacy Hinners, Kimberly King, Andra Kurtz, and Elizabeth Laffay.

The candidates answers to the question “Should the board give out tax abatements?” are below.

Adams:

Tax abatements can and have been used as an incentive for commercial development and capital growth and a benefit for many school systems. However, in Huron, I believe each request should be individually assessed along with the District’s financial needs to insure a “students first” posture in granting those abatements. In other words, what are the “net proceeds” to the school system and are they adequate for our needs?

Catri:

There may be times when a tax abatement is appropriate, but as a general rule, the answer is “no”. Considering government funding has decreased over the years, we depend more and more on local revenue. Because of this, long-term property tax abatements, as well as TIFs, hurt schools more than ever. It can be argued that abatements attract companies to the area. I would counter argue that quality schools are of importance for business attraction and expansion. The lost revenue in abatements and TIFs would not have solved our funding issue, but it would have spread the responsibility to all property owners.

Hartley:

The board needs to be more judicious in granting tax breaks to businesses. At the July 2021 meeting when discussing a new TIF agreement for 100% for 30 years, the school board president admitted he didn’t know if they could negotiate; yet he pressed forward anyway on a vote at that meeting, which was the first public discussion of the issue.

This is not the right course of action. We need board members who will advocate first and foremost for our children and our schools. We need board members who will ask questions, do their homework, know the district’s rights, and assert those rights on behalf of our schools. What they give away in tax breaks to businesses will have to be picked up by the homeowners.

Hathaway:

I believe that tax abatements can be a benefit to the school system if utilized in a smart way. As a small business owner, I believe in the importance of judging these requests on their merits. Each request should be reviewed individually and based on its risk vs. reward. These opportunities need to be a benefit to the School District’s financial/budgetary needs and not for the purpose of special interests. The family-first approach needs to be the center of this decision-making and whether or not the abatement is worth the commitment.

Hinners:

Very rarely – and not when the District is in a deficit and asking residents to pay more in taxes.

Huron is a small town with a limited number of residents and businesses. When a business receives a tax abatement or a TIF, it means money that should be going to our schools doesn’t. Over the last decade, Huron has seen multiple new businesses open. This economic development should have resulted in hundreds of thousands of dollars in new revenue for our schools – and financial stability. Because of abatements and TIF’s, however, the opposite has happened. Currently, our schools lose nearly $500,000 annually in tax money to tax abatements and TIFs. That number will increase to over $1M by the end of this year with the TIF recently granted to Cedar Fair and the TIF planned for Ardagh. The result is that residents – many with limited means – must pay more in taxes to support our schools so private businesses can pay less or nothing at all. We simply cannot afford to continue a practice where regular citizens pay more in taxes so businesses can pay less.

King:

I think the most recent tax abatement given out was actually a TIF. From my understanding in this instance taxes would still be paid. For tax abatements, I think the board would need to cautiously evaluate this, as it could end up costing the school more money in the long run when property isn’t taxed at it’s full valuation after significant improvements are made.

Kurtz:

Tax abatement consideration by the School Board should be on a case by case basis. The school board should always have the schools best interested in mind when deciding whether to grant a tax abatement. Any abatement consideration should be well thought out, negotiated, and balanced to equally benefit both the school and the city.

Laffay:

Tax abatements can be a useful tool for the community as they attract businesses which can help our area thrive. Each proposed abatement is different. They would need to be negotiated on fair terms for both parties and be assessed as individual proposals.