Opposition to House Bill 147 — Fairfield County Port Authority (Development Committee)

Summary

Letter from the Board of the Fairfield County Port Authority to the Development Committee opposing House Bill 147, which the letter describes as exempting from sales and use tax building materials sold to contractors under contracts valued at $25 million or more. It lists concerns including an unfair advantage for large corporations, loss of revenue from sales tax exemptions through Lease / Leaseback deals, and lost local control. It also cites a Fairfield County Port Authority project in Canal Winchester and Violet Township, stating that companies there are reinvesting 42% of their sales tax savings into infrastructure, an estimated $2.8 million. The letter closes with the name Rick Szabrak, Executive Director.

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Full text

March 24, 2026

RE: Opposition to House Bill 147

Dear Development Committee,

The Board of the Fairfield County Port Authority is writing to express our strong opposition to House Bill 147,
which seeks to amend sections of the Ohio Revised Code to exempt from sales and use tax building
materials sold to contractors under contracts valued at $25 million or more for projects in areas with a
port authority.

This bill would take decision making on economic development projects out of the hands of local officials.
While we applaud the committee’s effort to try to make a common development experience across various
jurisdictions of the State of Ohio, each community is unique. The sales tax exemption that Port Authorities can
provide is a great tool that allows local officials to determine whether a project meets the needs of the
community and if so, how some of those savings can b redirected to help drive more economic development.

Our Board requests you to consider the following concerns:

   •   Unfair Advantage for Large Corporations: By limiting tax exemptions to contracts worth $25 million
       or more, HB 147 disproportionately benefits massive corporations and developers, while leaving small
       and mid-sized businesses—who are the backbone of Ohio’s economy—at a disadvantage.
   •   Loss of Critical Revenue and Economic Development: Port Authorities derive revenue from granting
       Sales Tax Exemptions through Lease / Leaseback deals. These revenues are used to support
       continued Economic Development in our communities. In a number of cases, Port Authorities are the
       Local Economic Development Organization (LEDO) supporting various counties, municipalities and
       townships throughout Ohio. The Bill compromises the benefit derived by Port Authorities which could
       dramatically affect the viability and effectiveness of the organizations; and, ultimately negatively impact
       economic development in local communities throughout Ohio.
   •   Questionable Community Benefit: Though there is no guarantee that the tax breaks will translate into
       meaningful benefits for Ohio residents, often such incentives enrich developers without ensuring good-
       paying jobs, affordable housing, long-term community investment, and meeting community values and
       goals. But Port Authorities provide local control and strategic direction for projects within their
       communities as described below.
           o Lost Local Control and Direction: Port Authorities are created and their Boards appointed by
              local government. Therefore, Port Authorities are responsive to the elected representatives that
              in fact created them. Allowing an automatic sales tax exemption for select projects will remove
              any local control of development and allow for projects to be incentivized without considering
              the community benefit as outlined above.
           o Precedent for Future Loopholes: HB 147 sets a troubling precedent by carving out special tax
              privileges for select industries. This opens the door for further exemptions that erode Ohio’s tax
              base and weaken fiscal responsibility.
           o    Furthermore, please consider this local example in District 73: The Fairfield County Port
                Authority currently has a project in Canal Winchester and Violet Township where improvements
                are needed along Basil-Western Road to help make it an industrial corridor. The road
                improvements include the addition of a center turn lane and a roundabout to help truck traffic.
                These road improvements will bring thousands of jobs to Fairfield County. Companies
                developing along the corridor are reinvesting 42% of their sales tax savings into infrastructure,
                or an estimated $2.8 million. Without these savings, the county and City of Canal Winchester
                would have to move funds from other critical services or increase taxes to improve these roads.
                Removing the ability for Port Authorities to leverage this development tool to help local
                communities will put a further burden on local taxpayers and would reduce development

Ohio needs policies that support all businesses fairly, strengthen local communities, and protect public
revenue streams. HB 147 does the opposite by prioritizing corporate interests over taxpayers and small
businesses.

Our Board urges you to reject HB 147 and instead leave in place the legislation that fosters inclusive economic
growth, ensures accountability for developers, protects local control, and maintains a strong and equitable tax
system.

Thank you for your consideration of our concerns. I look forward to seeing you stand with local communities
and allow them to determine the best projects for their neighborhoods by opposing HB 147.

Respectfully,




Rick Szabrak

Executive Director

Fairfield County Port Authority


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