Ted Strickland's Big Campaign Donor Won't Pay School Taxes

[Why?Town]

This story is bad enough without being exaggerated to the point of Duke not paying taxes at all.

Exaggeration hurts a good argument and certainly doesn't help a poor one.

[irishbobcat]

Ted Strickland's Big Campaign Donor Won't Pay School Taxes

We recently learned that Duke Energy is notifying school districts that it has appealed to the Ohio Department of Taxation for a reassessment of its personal property tax valuation. While this appeal may initially only impact school districts in southwest Ohio that receive tax revenue from Duke Energy, it is possible that other utility companies may make similar requests at some point.

While the appeal is being heard, Ohio law allows Duke Energy to pay a lower tax amount based on the lower valuation amount it is seeking. According to its notification to school districts, Duke Energy is seeking to reduce its overall property tax payment by $40 million annually, or approximately 40% of its annual tax liability. This will result in immediate tax payment reductions for school districts that receive tax revenue from Duke.

This reduction, whether temporary or permanent, will shift the tax burden in many different ways. To the extent that Duke's tax obligation is reduced, other taxpayers, school districts and other local government services will be further burdened. It also comes at a time when districts have already made significant expenditure reductions, including cuts to student programs. In some cases, districts will have to make additional cuts and ask local taxpayers to invest more in order to balance their budgets.

Unfortunately, Duke Energy, in its discussion with school district officials, indicated it has known of this potential reduction since December 2009, but only began notifying school districts in recent days, just weeks before the start of a new fiscal year. The late notice puts districts in an extremely difficult position, because budgets have been completed for the 2010-11 school year, well after staff reduction notices have been (or were required to be) issued. The ability to make significant budget adjustments at this point is severely compromised.

Duke is requesting that its tax obligation be reduced by 40%, even though its assessed property values increased by 4% in 2009. This will have an enormous impact on individual school district budgets. Many affected districts have not yet been notified by Duke and will have to get the information relative to their districts directly from the energy company.

Now Duke Energy has the money to throw thousands of dollars at Ted Strickland's Re-Election campaign, in exchange for the Governor pushing more and more dirty coal plants be built for Duke Energy.

If Ted Strickland is the Education Governor, will he return his campaign contributions from Duke Energy until Duke begins paying taxes again? Ohio waits and wonders....Do you have ethics, Ted?