All communities say they want to promote new business and create jobs. But there’s a wide variety in both categories.

Heinz Stucki, director of the Tuscarawas County Community Improvement Corp., raises some interesting points in the latest Chamber of Commerce newsletter.

Stucki was discussing the impact of taxation on providing community services, noting “With pies, there are two ways to get a bigger helping: cut a bigger piece or bake a bigger pie. With taxes, the options are to increase tax rates or to increase incomes.”

However, according to the State Science and Technology Institute, Ohio ranked 44th of 50 states in new business establishments between 1998 and 2003, while dollar per capita incomes have declined.

In contrast, Stucki cites the success of Dublin, a Columbus suburb, which has implemented a policy of tax-based economic development. “Dublin’s strategy is straightforward: maximize tax revenues per square foot.” For example, Dublin has aggressively pursued corporate headquarters, where a 10- by 10-foot cubicle can generate $100,000 in taxable income. Warehouse operations, on the other hand, requires significant public infrastructure, but provides very few jobs and little income per square foot.

It is doubtful Tuscarawas County will attract many corporate headquarters, but Stucki notes we have our own strategy for pursuing higher-income jobs. Funding has been secured for the Tuscarawas Regional Technology Park, engineering design is in progress and the roadway has been staked out.

“The base case scenario calls for 25 high-tech businesses, each with 25 employees earning a conservative average of $50,000 per year,” Stucki wrote. “Private investment for buildings and equipment will average $2.5 million per site. It is estimated that this project will ultimately result in private investments of $62 million and the creation of 600 jobs with a total annual income of $30 million.”

That certainly would be a significant increase in the county’s tax base. But the best part is that while it will take some time, the area will be able to pay for improved public services without increasing tax rates.

At least that’s the theory, and it has a basis for reality.

© Times Reporter 2004