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Amanda-Clearcreek board approves income-tax sharing agreement tied to Google data center
Summary
The Amanda-Clearcreek Local Board approved an income-tax sharing agreement with the City of Lancaster related to the Google data‑center community reinvestment area (CRA). The deal could yield annually shared municipal income tax if earned‑income on the site exceeds a $2 million threshold.
The Amanda-Clearcreek Local Board of Education on June 24 approved an income-tax sharing agreement with the City of Lancaster tied to a community reinvestment area for a Google data‑center project.
Treasurer (speaking as Treasurer) told the board the CRA is a pre‑1994 designation that exempts property improvements from local property taxes for 15 years but allows the city to share municipal income‑tax revenue with the district. Under the agreement, the district becomes eligible to receive a portion of reported municipal earned income generated by people working on the site only after annual reported earned income from the property exceeds a $2,000,000 threshold.
"There is a $2,000,000 threshold that has to be met before eligible for this," the Treasurer said, adding that once the threshold is met the city will share a portion of income tax receipts under a formula in the agreement. The Treasurer also told the board the city negotiated a formula that permits certain infrastructure deductions and that the city may deduct up to 35% for allowable infrastructure costs before sharing revenue.
Board members asked practical questions about timing and receipt of funds. The Treasurer said municipal earned‑income is reported on a calendar‑year basis, that public‑utility property reporting (PUP) is self‑reported in October, and that payments from the city are expected annually in the first quarter following year‑end. The Treasurer noted that telecommunications value is generally exempt from PUP under a 2012 law, so electric infrastructure is the most likely PUP increase the district could see.
Members suggested district outreach to Google to pursue workforce‑development partnerships or direct grants, citing examples from other jurisdictions where districts negotiated separate grants or pilot agreements. The Treasurer said those conversations are appropriate but distinct from the CRA income‑sharing formula the board approved.
The board approved the agreement by roll call. The action moves the district into a position to receive income‑tax shares if and when reporting thresholds are met; the first meaningful PUP report for the site is expected this October and anticipated payments would be annual thereafter.
