Montgomery Township office.
Montgomery Township office and garage off U.S. Route 250. Credit: Dillon Carr

ASHLAND — Ashland City Council approved a revenue sharing agreement on Tuesday with Montgomery Township ahead of an expected annexation of 91 acres east of the city. 

The city and some property owners petitioned Ashland County commissioners earlier this year to annex 91 acres of land out by U.S. Route 250 and Interstate 71. 

Commissioners held a public hearing on July 6, where a couple Montgomery Township trustees requested a longstanding revenue sharing agreement be put in writing before the annexation is approved. 

Ashland Mayor Matt Miller said Tuesday the city has always had a good working relationship with Montgomery Township, adding the alliance has meant successful development in the U.S. 250 and Interstate 71 corridor. 

“As we continue to develop the area in the corridor, we want to continue that relationship,” Miller said. 

The agreement states Montgomery Township will receive 50% “of the real estate taxes, levied and collected upon the property within the described area, for a period of 50 years.”

After 50 years, the city would receive 100% of the real estate tax revenue, the agreement reads. 

The agreement also says Montgomery Township would receive 100% of lodging taxes in perpetuity should any hotels, motels, rooming houses or other lodging accommodations be built on annexed land. 

Those taxes — also referred to as Transient Occupancy Taxes or bed tax — are disbursed to the Ashland Convention and Visitor’s Bureau (CVB), an arm of the Ashland Area Chamber of Commerce. 

However, Montgomery Township also levies its own bed tax, at a 3-percent rate.

The agreement solidifies that Montgomery and the Ashland CVB will continue to receive those lodging taxes.

Ashland County commissioners are expected to vote on the annexation on either July 20 or July 27, commissioner Jim Justice said. 

Lead reporter for Ashland Source who happens to own more bikes than pairs of jeans. His coverage focuses on city and county government, and everything in between. He lives in Mansfield with his wife and...

Join the Conversation

1 Comment

Leave a comment

Your email address will not be published. Required fields are marked *