Opponent Testimony — Ohio Council of Port Authorities on Substitute House Bill 147 (February 24, 2026)

Summary

This is opponent testimony on Substitute House Bill 147 (Lorenz) to the Ohio House Development Committee, dated February 24, 2026, from the Ohio Council of Port Authorities (OCPA), which states that it represents the 67 port authorities across the State of Ohio. The testimony expresses strong opposition to Substitute House Bill 147, Exempt from sales and use tax certain port authority materials. It says the bill allows a developer to request a sales tax exemption from the Ohio Tax Credit Authority (TCA) if a port authority fails to execute an agreement within 30 days of a proposal, and that the process would apply to any project with a construction contract price of $25 million or more.

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                                       40 Forest Cove Drive, Green, Ohio 44319

                              Ohio House Development Committee
                     Opponent Testimony, Substitute House Bill 147 (Lorenz)
                               Ohio Council of Port Authorities
                                      February 24, 2026

Chair Hoops, Vice Chair Lorenz, Ranking Member Brownlee, and members of the House
Development Committee:

The Ohio Council of Port Authorities (OCPA), representing the 67 port authorities across the State
of Ohio, writes to express strong opposition to Substitute House Bill 147, “Exempt from sales and
use tax certain port authority materials.”

Port authorities play a critical role in spurring economic development and growth across Ohio
through disciplined public finance practice. Port authority participation brings experienced financial
structuring that aligns project goals, secures favorable terms, and coordinates all components of a
complex transaction to protect the public interest. As quasi-public entities, port authorities fill an
essential role in funding transformative projects while ensuring fiscal stewardship and careful
consideration of broader public policy implications.

Sub. H.B. 147 would fundamentally alter that framework. The bill allows a developer to request a
sales tax exemption from the Ohio Tax Credit Authority (TCA) if a port authority fails to execute an
agreement within 30 days of a proposal. By imposing an arbitrary deadline, the bill permits a
developer to bypass the port authority and seek relief from the TCA before meaningful local review
can occur. Evaluating incentive need, fiscal impact, and alignment with economic development goals
requires careful analysis and negotiation. Complex development agreements cannot always be
responsibly completed within such a compressed timeline.

This process would apply to any project with a construction contract price of $25 million or more if
the property owner is “bound by a separate agreement to finance or assist in the completion of public
infrastructure improvements in the surrounding area.” That threshold is routinely satisfied by
developer obligations under development agreements and even standard building permit
requirements. Further, if a municipality has committed a Tax Increment Financing (TIF) to a project,
the public infrastructure is financed through a public incentive mechanism. In those cases, the
property owner is not financing the improvements with private capital. The bill does not account for
this distinction but still permits access to the TCA process.

While the use of public finance tools in private sector projects, including structured leases and sales
tax exemptions, is evaluated on a case-by-case basis, the underlying statutory framework is
consistent statewide. Port authorities apply that framework through fiscal analysis, incentive
stacking considerations, and local economic priorities. Differences in outcomes reflect variations in
project structure and overall incentive packages, not a lack of standards.
Sub. H.B. 147 removes that locally accountable discretion and shifts decision-making authority
away from publicly appointed boards to a state-level body that is not directly accountable for the
fiscal and community impacts within the affected local jurisdiction. Granting exemptions without
local oversight creates real risk. It may increase strain on public resources, limit the ability to
negotiate community-responsive outcomes, and weaken accountability. By inserting an independent
board into a process currently governed locally and transparently, the bill fundamentally undermines
the governance structure established for port authorities under Ohio law.

For these primary reasons, the Ohio Council of Port Authorities respectfully urges the Committee to
oppose Substitute House Bill 147.

Thank you for your time and consideration. We welcome the opportunity to further discuss the
potential impacts of this legislation.


Sincerely,


Harry Eadon
Harry Eadon
Executive Director
Ohio Council of Port Authorities


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