On Thursday night, the Ohio House of Representatives passed House Bill 665, sponsored by State Representatives Don Jones (R-Freeport) and Shane Wilkin (R-Hillsboro), legislation to modernize the Ohio Revised Code as it refers to county fairs.
While most of the bill contained language for updating language to modernize how fairs can use money, it increases the amount an agricultural society receives from the county, and fair board related filings. HB 665, while technical in nature, is seeking to create financial flexibility and feasibility for agricultural societies, while requiring transparency from the societies.
Also, included as part of HB 665 is this line:
This line would mean that the Canfield Fairgrounds would be exempted from paying the ABC Water District assessment fees which were created to stop flooding in area townships.
The ABC Water District is a joint effort of Austintown, Boardman and Canfield Townships that was created in 2019 to help address issues relating to stormwater in these three Mahoning Co. townships.
On the district's website, it states the goal of ABC is, "Among these issues are flooding and improvement of water quality. The district has infrastructure in place to deal with flooding, and that infrastructure must be maintained and repaired. New infrastructure must also be constructed as the area grows and its needs change."
Jason Loree, Boardman Township Trustee and ABC Water District board member, said that the Canfield Fair board has decided it would rather change state law rather than work with the (ABC) District.
Loree said the loss of fees collected from the Canfield Fairgrounds will have a significant impact on the district's ability to proceed with some planned projects with the loss of the fairground fees if HB 665 passes the Ohio Senate.
Loree and Keith Rodgers, also an ABC district board member, in a letter on June 1 to the chairman of the House Agriculture and Rural Development Committee stated, "that this proposed new section of law is intended to specifically exempt the Canfield Fair from the monthly ABC stormwater utility fees. These fees are not assessments or taxes. The ABC stormwater fees are monthly utility service fees collected along with property taxes to address the significant and persistent flooding problems in Boardman and Canfield Townships and address federal Phase II stormwater mandates.
Rodgers said that the fees are collected in each of the townships stay within the townships, so the loss of from the fairgrounds, which currently pays the single largest fee of $19,000 towards Canfield Townships portions of the water district hurts.
The water district assessment is paid by owners of developed property with non-pervious surfaces in the townships. These surfaces include parking lots, roadways, and other hard surfaces that do not absorb water and contribute to the flooding and erosion impacting public health, economic vitality, and water quality of the townships.
The submitted to Koehler said, "It is patently unfair to the other residents of Boardman and Canfield Townships to enact a law to exempt one of the single largest non-pervious properties in those Townships for no reason other than its owner is an agricultural society. Moreover, as written the Bill, which will have statewide impact, would prevent any regional district (but not municipal or county) assessments or “other fees” for water, sewer, or stormwater that are collected along with property taxes. While it is well understood and accepted that undeveloped properties in agricultural districts are exempt from water and sewer assessments, it is illogical and unfair to exempt developed properties that benefit from such utility charges simply because they happen to be owned by an agricultural society."
George Roman III, a director with the Canfield Fair Board, told 21 News that while it is unfortunate that this will impact ABC Water District, but fairgrounds are in agreement with other agricultural facilities that [HB665] is best for their business.
In a letter submitted by Bev Fisher, Canfield Fair Manager stated that "fairs are currently all 501(c)(3) organizations are therefore exempt from taxes. The provisions of HB 665 clarify those exempt from taxes. There is also a section of code added to the bill that specifies that fairs are also exempted from regional water and sewer district assessments. For Canfield Fair, this assessment has added almost $19,000 to our property tax bill."
Fisher said that since it was an assessment and not a tax, the fair has been obligated to pay the fee, which HB 665 while now makes the fairgrounds exempt.
Fisher said the intent is not to exempt fairs from paying their water, stormwater, and sewer bills, but to exempt them from this added assessment.
In her testimony to the Ohio House Agriculture and Rural Development Committee on May 28, Fisher was asked by Rep. Juanita Brent (D-Cleveland) who would pay for the $19,000 assessment if made exempt.
"They [ABC] are stockpiling that money to be able to try to handle stormwater, that may come into the area. Magic word was may come into the area. They're not exactly sure what they are going to do with the money," Fisher testified.
House Bill 665 passed with a vote of 62-25 and now goes to the Senate for consideration