Lebanon Mayor’s Office
Economic Development
A Study of Select Economic and Other
Impacts of Lebanon Business Park (PDF)
Property Tax Impact of Lebanon Business Park
The City of Lebanon has experienced a steady increase in total assessed value of property, as well as a decrease in property tax rates since the LBP originated. For example, during the period 1998 to 2007, the gross tax rate in Lebanon decreased from $3.2378 to $2.4746. For the period 2002 to 2006, total assessed value of property grew from $650 million to $1.035 billion, with over half of this growth emanating from commercial and industrial development.
Much of this growth can be attributed to activity within the LBP. For the period 1998 to 2006, the assessed value of land alone within the LBP increased from $3.5 million to $18.9 million. For this same time period, the assessed value of real property improvements increased from $65.7 million to more than $222 million. The assessed value of business personal property also grew during this period, from $9.3 million to $27.5 million, despite the elimination of the personal property tax on inventory.
Since 1998, the net taxable value within LBP has increased from $8.3 million to $147 million. This is true despite the fact that the LBP operates within a Tax Increment Finance district where many of the companies currently receive phasedout tax abatement (vs. full abatement that is available to companies in competing states). Because the TIF operates in the black, the excess revenue that it generates is allocated to schools, regular taxing units, and other broader uses. In sum, the LBP accounts for approximately 60% of the total business assessment base in the City of Lebanon, and more than 25% of the total assessed value in the entire city.
Employment Impact of Lebanon Business Park
As the number of businesses operating within the LBP has increased, the total number of employees working at these businesses has increased as well. For the period 2002 to 2007, the number of full-time employees working in LBP has increased from 2,220 to 2,620. In fact, it is believed that the increase during this time period is understated in that the 2002 total includes temporary employees whereas the 2007 total does not.
Average annual compensation has increased during this same period as well, from $27,072 to $33,502. The number of employees who work in the LBP and reside in Boone County has increased also, from 41% in 2003 to 46% in 2007. LBP employers offer health benefits and other fringes to their employees. School Impact of Lebanon Business Park
The increase in population in the City of Lebanon from 12,059 in 1990 to 15,186 in 2006 has occurred at the same time student enrollment has increased at Boone County schools. These increases are reflected in the following chart:
| School | 1993-1994 Enrollment |
2007-2008 Enrollment |
% Increase |
|---|---|---|---|
| Lebanon Community School Corp | 3,150 | 3,549 | 13% |
| Western Boone County Community School District | 1,694 | 1,899 | 12% |
| Zionsville Community Schools | 2,521 | 5,248 | 108% |
During this same period of time, employment at LBP businesses has reached 2,620 since its formation. Unfortunately, the correlation between the increase in enrollment and the growth at the LBP is impossible to gauge based on the lack of pertinent documentation that is readily available.
Spending per pupil has nearly doubled during this same time period for Lebanon Community School Corporation, from $4,883 in 1992 to $9,835 in 2006. Excess revenue generated from the LBP TIF district has provided support for a portion of this increased spending.