6C BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY PLACEMENT: PUBLIC HEARINGS PRESET: TITLE: ADOPT AN ORDINANCE AMENDING CHAPTER 71 (FINANCE AND TAXATION) OF THE CODE OF ORDINANCES OF MARTIN COUNTY, FLORIDA, BY CREATING ARTICLE 13 (ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS) AGENDA ITEM DATES: MEETING DATE: 6/8/2010 COMPLETED DATE: 5/27/2010 COUNTY ATTORNEY: 5/17/2010 ASSISTANT COUNTY ADMINISTRATOR: 5/24/2010 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Board of County Commissioners Name: Procedures: None EXECUTIVE SUMMARY: Department of Administration David Graham, Director of Administration On May 4, 2010, the Board directed staff to prepare an ordinance that would provide the Commission, following the passage of a referendum by the voters of Martin County, the ability to offer certain tax exemption to specific targeted industries. APPROVAL: LEG ACA CA BACKGROUND/RELATED STRATEGIC GOAL: 800ed2d0 PDF Page 1 of 53
The ordinance will be provided to the Board via Supplemental Memorandum. ISSUES: N/A RECOMMENDED ACTION: RECOMMENDATION Please refer to the Supplemental Memorandum. ALTERNATIVE RECOMMENDATIONS N/A FISCAL IMPACT: RECOMMENDATION N/A Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS N/A DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter Contract / Agreement Grant / Application Notice X Ordinance Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA X ACA X LEG 800ed2d0 PDF Page 2 of 53
BCC MEETING DATE: June 8, 2010 AGENDA ITEM: 6C TO: VIA: FROM: MARTIN COUNTY, FLORIDA SUPPLEMENTAL MEMORANDUM Honorable Members of the Board DATE: June 1, 2010 of County Commissioners Taryn Kryzda Acting County Administrator David Graham, Director of Administration SUBJECT: Adopt an ordinance amending Chapter 71 (Finance and Taxation) of the Code of Ordinances of Martin County, Florida, by creating Article 13 (Economic Development Ad Valorem Tax Exemptions) The Business Development Board (BDB) will present information regarding this Tax Exemption Program prior to the public hearing. Attached please find the proposed ordinance, a referendum resolution authorizing the Supervisor of Elections to place the question on the ballot, the Ad Valorem Tax Exemption Program, and a copy of the BDB presentation. Additional action needs to be taken by the Board to rescind Resolution #10-5.7 which was adopted on May 4, 2010. This resolution provided language to the Supervisor of Elections regarding the Ad Valorem Tax Exemption referendum. Unfortunately, the referendum word count exceeded 75 words, the maximum allowed by law. The attached resolution corrects this error. RECOMMENDED ACTION: Rescind Resolution #10-5.7 and adopt the Ad Valorem Tax Exemption Ordinance and referendum resolution. ALTERNATE RECOMMENDATIONS: 1. Rescind Resolution #10-5.7 and amend the Ad Valorem Tax Exemption Ordinance and/or the referendum resolution. 2. Rescind Resolution #10-5.7 and do not adopt the ordinance. Reviewed by Stephen Fry, County Attorney Page 1 of 1 adm2010m473 SUPPLEMENTAL.docx PDF Page 3 of 53
BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 71 (FINANCE AND TAXATION) OF THE CODE OF ORDINANCES OF MARTIN COUNTY, FLORIDA, BY CREATING ARTICLE 13 (ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS) TO ENCOURAGE ECONOMIC DEVELOPMENT IN MARTIN COUNTY, AS PERMITTED BY SECTION 196.1995, FLORIDA STATUTES; ESTABLISHING AN EXEMPTION FROM CERTAIN AD VALOREM TAXATION FOR CERTAIN NEW AND EXPANDING BUSINESS PROPERTIES; PROVIDING DEFINITIONS AND REQUIREMENTS; PROVIDING PROCEDURES FOR APPLICATION FOR EXEMPTION; SPECIFYING DUTIES OF THE PROPERTY APPRAISER IN CONNECTION WITH SUCH PROPERTY; PROVIDING FOR CONFLICTING PROVISIONS, SEVERABILITY AND APPLICABILITY AND FILING WITH THE DEPARTMENT OF STATE; PROVIDING FOR AN EFFECTIVE DATE FOR THIS ORDINANCE CONTINGENT UPON APPROVAL OF TAX EXEMPTION BY THE VOTERS OF MARTIN COUNTY, AS REQUIRED BY STATE LAW; AND PROVIDING FOR CODIFICATION WHEREAS, the Board of County Commissioners of Martin County, Florida, has made the following determinations: 1. Section 196.1995, Florida Statutes, provides that the Board of County Commissioners may hold a referendum to determine whether it may grant Economic Development Ad Valorem Tax Exemptions under Section 3, Article VII of the State Constitution. 2. This Board believes that amending Chapter 71 (Finance and Taxation) of the Code of Ordinances of Martin County, Florida, by creating Economic Development Ad Valorem Tax Exemptions for new or expanding business is in the best interest of the health, safety and public welfare of the citizens of Martin County, Florida. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Martin County, Florida: Page 1 PDF Page 4 of 53
PART ONE: AMENDMENT OF CHAPTER 71 (FINANCE AND TAXATION) OF THE CODE OF ORDINANCES OF MARTIN COUNTY, FLORIDA. Chapter 71 (Finance and Taxation of the Code of Ordinances of Martin County, Florida, is hereby amended by creating Article 13 (Economic Development Ad Valorem Tax Exemptions) to read as follows: ARTICLE 13 ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS Section 71.455. Title. This Ordinance shall be known as the Economic Development Ad Valorem Tax Exemption Ordinance of Martin County, Florida. Section 71.456. Enactment and Authority. Pursuant to Section 3, Article VII of the State Constitution and in accordance with Section 196.1995, Fla. Stat., the County is authorized and empowered to adopt, amend or revise and enforce an ordinance relating to economic development ad valorem tax exemptions, after the electors of the county, voting on the question in a referendum, authorize the adoption of such ordinance. Section 71.457. Jurisdiction. This Ordinance shall be applicable in all areas of Martin County where Martin County is the taxing authority. Section 71.458. Purpose and Intent. The public health, safety, comfort, economy, order, convenience and general welfare require the harmonious, orderly and progressive development of new business and expansion of existing business in Martin County. It is the intent of this article to secure or to ensure: (1) The establishment of criteria for granting such exemptions to certain types of businesses or industries or for denying exemptions on a rational, non-arbitrary, nondiscriminatory basis by the Board of County Commissioners. (2) No precedent shall be implied or inferred by the granting of an exemption to a new or expanding business. Applications for exemptions shall be considered by the board of county commissioners on a case-by-case basis for each application, after consideration of the property appraiser's report on that application. Page 2 PDF Page 5 of 53
(3) Any exemption granted shall apply up to one hundred (100) percent of the assessed value of all improvements to real property made by or for the use of a new business and all tangible personal property of such new business, or up to one hundred (100) percent of the assessed value of all added improvements to real property, which additions are made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business. (4) Any exemption shall be up to a full ten-year period from the time the exemption is granted. (5) No exemption shall be granted on the land which new or expanded businesses are to be located. (6) No exemption shall be granted on school or water management district taxes, or on taxes levied for payment of bonds or taxes authorized [by] a vote of the electors of the county pursuant to sections 9 or 12, Article VII, of the State Constitution. (7) No exemptions shall be granted for improvements to property or tangible personal property which have been previously included on the tax rolls. (8) The ability to receive an exemption for the period granted shall be conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business as defined by the conditions of this application throughout the entire exemption period. The applicant shall be required to submit a report on an annual basis to the County evidencing satisfaction of this condition. In addition, any business granted an exemption shall furnish to the County such information/report as the County may reasonably deem necessary for the purpose of determining continuing performance by the business of the conditions stated in this ordinance, the ordinance granting the exemption and the representations made in the application process. Section 71.459. Definitions. The following words, phrases and terms shall have the same meanings attributed to them in current Florida Statutes and the Florida Administrative Code, except where the context clearly indicates otherwise: (1) Applicant. Any person or corporation submitting an economic development ad valorem tax exemption application to the board. (2) Board. The Martin County Board of Commissioners. (3) Business. Any activity engaged in by any person, corporation or company with the object of private or public gain, benefit, or advantage, either direct or indirect. Page 3 PDF Page 6 of 53
(4) Department. The Florida Department of Revenue. (5) Expansion of existing business. a. A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this county, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or b. Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this county, the sales factor of which, as defined by section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than one-half (0.50) for each year the exemption is claimed, provided that such business increases operations on a site collocated with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than ten (10) percent or an increase in productive output of not less than ten (10) percent. No business engaged in retail operations as defined herein shall be eligible for an exemption pursuant to this subsection b. c. Any business located in an enterprise zone that increases operations on a site collocated with a commercial or industrial operation owned by the same business. (6) Improvements. Physical changes made to raw land, and structures placed on or under the land surface. All personal property acquired to facilitate an expansion of an existing business provided that the personal property is added or increased on or after the day the ordinance is adopted. However, property acquired to replace existing property shall not be considered to facilitate a business expansion. (7) New business. a. A business establishing ten (10) or more jobs to employ ten (10) or more fulltime employees in this county, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; b. A business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this county, the sales factor of which, as defined by section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than one-half (0.50) for each year the exemption is claimed. No business engaged in retail operations as defined herein shall be eligible for an exemption pursuant to this subsection b.; or Page 4 PDF Page 7 of 53
c. An office space in this state owned and used by a corporation newly domiciled in this county; provided such office space houses fifty (50) or more full-time employees of such corporation; provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. d. Any business located in an area designated enterprise zone that first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. (8) Retail operations. A business engaged in a sale to a consumer or to any person of an item of tangible personal property for any purposes other than for resale. (9) Sales factor. A fraction the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. (See section 220.15(5), Florida Statutes, for specifics of computation). Section 71.460. Application for exemption. (a) Application. Any eligible person, firm, partnership or corporation which desires an exemption shall file with the board a written application prescribed by the department (DR- 418), a copy of which is attached hereto and incorporated herein as exhibit A (which has not been set out herein, but is on file in the office of the county clerk). (b) Required information. The application shall request that the board adopt an ordinance granting the applicant the exemption and shall include, at a minimum, the following: (1) The name and location of the new business or the expansion of an existing business; (2) The name of the owner(s) of the new business or the expansion of an existing business; (3) A legal description of the real property and a description of the improvements to the real property for which an exemption is requested and the date of intended or actual commencement of construction of such improvement; (4) A description of the tangible personal property for which an exemption is requested and the dates when such property is to be purchased; Page 5 PDF Page 8 of 53
(5) Proof, to the satisfaction of the board, that the applicant meets the criteria for a new business or for an expansion of an existing business as defined in Section 71-75 hereof; (6) The following information: a. The current number of full-time/equivalent (FTE) of the expanding business; the total number of FTE to be created and maintained by the new or expanding business, and the period (total number of years) needed to fill all of the new jobs; b. The expected number of employees who will reside in the county; c. The average annual wage of the new jobs, identifying the average annual salary with executives salaries included and with executives salaries excluded; d. The type of business; e. The environmental impact of the business; f. The current and anticipated volume (in dollars) of business or production, and the percentage of total product sales outside of the county; g. Whether relocation or expansion would occur without the exemption; h. The cost and demand for services; i. The source of supplies (local or otherwise); j. Whether the business will be/is located in a community redevelopment area and/or enterprise zone; and k. The total length (number of years) of the exemption period being requested. (7) Other information deemed necessary by the Board. (c) Job creation and maintenance. A business will be required to commence the creation of full-time jobs within the period of the exemption and to maintain any newly filled jobs for its facility in the county at minimum through to the expiration of the exemption granted by the board. Page 6 PDF Page 9 of 53
(d) Community redevelopment agency. If a new business is locating to, or an expansion of an existing business is occurring in, a community redevelopment area, the community redevelopment agency overseeing such area shall be provided a copy of the application for review and comment. Input from the community redevelopment agency will be considered in deciding whether an application is to be granted. Should a community redevelopment agency object to the grant of an exemption, the agency may submit said objection in the form of a duly adopted resolution to the board for its consideration. (e) Filing deadline. The application shall be filed on or before March 1 of the year in which an exemption is requested. (f) Review. Upon submittal of the application, the county administrator or his designee shall review same and notify the applicant of any facial deficiencies. Section 71.461. Procedure. (a) Before the board acts on an application, it must be submitted to the property appraiser for review. After careful consideration, the property appraiser shall report to the board concerning the fiscal impact of granting exemptions. The property appraiser's report shall include the following: (1) The total revenue available to the county for the current fiscal year from ad valorem tax sources. (2) The amount of revenue foregone by the county for the current fiscal year because of economic development ad valorem tax exemptions previously granted. (3) An estimate of the amount of revenue which would be foregone for the current fiscal year if the exemption is granted to the new or expanding business. (4) A determination that the business meets the definition of a new or expanding business as defined in this article. Upon request, the department will provide the property appraiser such information as it may have available to assist in making this determination. (b) After consideration of the report of the property appraiser, the board may choose to adopt an ordinance granting the tax exemption to a new or expanding business. The ordinance shall be adopted in the same manner as any other ordinance of the county. The ordinance shall include the following information; (1) The name and address of the new or expanding business. (2) The amount of revenue available from ad valorem tax sources for the current fiscal year, revenue foregone for the current fiscal year because of economic Page 7 PDF Page 10 of 53
development ad valorem tax exemptions currently in effect, and the amount of estimated revenue which would be foregone because of the exemption granted to the new or expanding business. (3) The expiration date of the exemption. (Up to ten (10) years from date of board adoption of the ordinance granting the exemption). (4) A finding that the business meets the definition of a new business or an expansion of an existing business. (5) The board's authority to revoke an exemption if the business no longer satisfies the criteria for the exemption. Section 71.462. Fees. Fees charged to offset the cost of processing the economic development ad valorem tax exemption application or any exemption ordinance shall be adopted by the board by resolution. Section 71.463. Eligible business. Any business, as defined in section 71.459., that does not qualify as an ineligible business as defined in section 71.464. When considering the issue of whether or not a business is an eligible business as defined herein, the board shall consider the anticipated number of employees, average wage, type of business, environmental impacts, volume of business or production or any other information relating to the issue of whether the proposed development in Martin County prior to accepting the economic development ad valorem tax exemption application. The criteria for determining the length of an exemption and the percentage amount of an exemption may be adopted by the Board by resolution. The criteria shall provide for incentives for businesses that employ Martin County residents who establish permanent domicile pursuant to Florida Statutes. Section 71.464. Ineligible business. Any business in violation of any federal, state, or local law or regulation is ineligible to receive an exemption. The board may use this criteria to deny a request for an exemption or to revoke an exemption previously granted. The board may, in its discretion, determine that a business is eligible notwithstanding that the business is in violation. Section 71.465. Revocation of exemption. (a) Board. Should any new business or expansion of an existing business fail to file the annual report with the board on or before March 1 of each year the exemption has been granted as required in sections 17-255(i)(1) and (2), or fail to continue to meet the definition of a new business or an expansion of an existing business, and/or fail to fulfill any other representation made to the board Page 8 PDF Page 11 of 53
during the application process, including the creation and maintenance of the total number of new jobs identified by a business in the application (exhibit A, not set out herein, but on file in the office of the county clerk), the board may adopt an ordinance revoking the ad valorem tax exemption. (b) Revocation. The revocation of an ordinance may occur for a business that fails to fulfill its obligations as provided for under the ordinance granting the business an exemption after the expiration of this article. The effective date for revocation of the exemption will be identified in the ordinance. (c) Notification. Upon revocation, the board shall immediately notify the property appraiser. (d) Reapply. Nothing herein shall prohibit a business from reapplying for an ad valorem tax exemption pursuant to state law. Section 71.466. Appeals. The decision of the board not to grant an economic development ad valorem tax exemption to a particular business is subject only to judicial review pursuant to the Florida Rules of Appellate Procedure. PART TWO: CONFLICTING PROVISIONS. Special acts of the Florida legislature applicable only to unincorporated areas of Martin County, Martin County ordinances, and Martin County resolutions, or parts thereof, in conflict with this ordinance are hereby superseded by this ordinance to the extent of such conflict except for ordinances concerning either adoption or amendment of the Martin County comprehensive plan, pursuant to Chapter 163, Part II, Florida Statutes, or land development regulations relating specifically to community redevelopment areas established pursuant to Chapter 163, Part III, Florida Statutes. PART THREE: SEVERABILITY. If any portion of this ordinance is for any reason held or declared to be unconstitutional, inoperative or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provision thereof shall be held to be inapplicable to any person, property or circumstances, such holding shall not affect its applicability to any other person, property or circumstances. PART FOUR: APPLICABILITY OF ORDINANCE. This ordinance shall be applicable in all areas of Martin County where Martin County is the taxing authority. Page 9 PDF Page 12 of 53
PART FIVE: FILING WITH THE DEPARTMENT OF STATE. The Clerk be and is hereby directed to send a certified copy of this ordinance to the Bureau of Administrative Code, Department of State, R.A. Gray Bldg., Room 101, 500 S. Bronough Street, Tallahassee, Florida 32399-0250, forthwith after approval of the ballot question authorizing this ordinance by the voters of Martin County. PART SIX: EFFECTIVE DATE. The effective date of this ordinance is contingent upon approval by the voters of Martin County and shall take effect upon filing with the Department of State. PART SEVEN: CODIFICATION. Provisions of this ordinance shall be incorporated in the Martin County Code, and the word ordinance may be changed to section, article, or other appropriate word, and the sections of this ordinance may be renumbered or relettered to accomplish such intention; provided, however, that parts TWO through SEVEN shall not be codified. PASSED AND DULY ADOPTED this day of, 2010. ATTEST: Marsha Ewing, Clerk BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA BY: Doug Smith, Chairman APPROVED AS TO FORM AND CORRECTNESS: BY: Stephen Fry, County Attorney Page 10 PDF Page 13 of 53
BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA RESOLUTION No. A RESOLUTION CALLING FOR A REFERENDUM PURSUANT TO SEC. 196.1995, FLA. STAT., ON THE QUESTION OF WHETHER MARTIN COUNTY MAY GRANT ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS IN MARTIN COUNTY ON THE AUGUST 24, 2010, PRIMARY ELECTION BALLOT WHEREAS, the Board of County Commissioners of Martin County, Florida, has made the following determinations: 1. Section 196.1995, Fla. Stat., provides that the Board of County Commissioners may hold a referendum to allow the voters to determine whether to grant authority for economic development ad valorem tax exemptions to new and expanding businesses in Martin County under Section 3, Article VII of the State Constitution. 2. This Board believes that calling for a referendum on the question of whether Martin County may grant economic development ad valorem tax exemptions for Martin County on the Primary Election Ballot on August 24, 2010, is in the best interest of the public health, safety and welfare of the citizens of Martin County, Florida. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA: 1. This Board does hereby direct the Supervisor of Elections to place on the August 24, 2010, Primary Election Ballot the following referendum to be voted upon by the electors of Martin County: ECONOMIC DEVELOPMENT INCENTIVE AD VALOREM TAX EXEMPTION These exemptions would allow Martin County to encourage job creation by granting property tax exemptions on assessed value of new improvements and personal property for eligible businesses. Exemptions last up to 10 years and don t apply to school city or voter approved taxes. Shall Martin County Board of County Commissioners be authorized to grant pursuant to Section 3, Article VIII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses? Yes For authority to grant exemptions. No Against authority to grant exemptions. 1 PDF Page 14 of 53
2. If the referendum is approved by a majority of the electors voting at the August 24, 2010, election, the Board of County Commissioners, at its discretion, by ordinance may exempt from ad valorem taxation up to one hundred percent (100%) of the assessed value of all improvements to real property made by or for the use of a new business and of all tangible personal property of such new business, or up to one hundred percent (100%) of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the improvements to real property are made or the tangible personal property is added or increased on or after the day the ordinance is adopted. After motion and second, the vote on this resolution was as follows: Chairman Doug Smith Vice Chairman Edward V. Ciampi Commissioner Patrick Hayes Commissioner Susan Valliere Commissioner Sarah Heard PASSED AND DULY ADOPTED this day of, 2010. ATTEST: BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA MARSHA EWING, CLERK BY DOUG SMITH, CHAIRMAN APPROVED AS TO FORM AND CORRECTNESS: STEPHEN FRY, COUNTY ATTORNEY 2 PDF Page 15 of 53
Ad Valorem Tax Exemption Program Martin County xx/xx/2010 The Martin Board of County Commissioners (BOCC) is pleased to provide the application and instructions for the Economic Development Ad Valorem Tax Exemption Program, which is designed to assist economic development through exempting certain property taxes. First, to help determine if you qualify under this incentive program, you should read Section IV, Do You Qualify for a Tax Exemption. If you have any questions about this program, including eligibility, or regarding the application process, please contact Ronald Bunch, Executive Director of the BDBMC, Inc., at (772) 221-1380. Table of Contents I. Program Intent II. III. IV. Enactment Authority Definition of Terms Qualification for Tax Exemption Do You Qualify for a Tax Exemption V. Application for Exemption VI. VII. Exemption Application Process Contact Source for Assistance Attachments A. State Application, County Supplemental Application, Annual Report Forms B. Economic Development Ad Valorem Tax Exemption Ordinances: Ordinance #xx-xx C. Section 196.195 F.S. and Section 196.012 Subsections (15) and (16) F.S. D. Martin County Tax Exemption Guidelines 1 PDF Page 16 of 53
I. Program Intent The Martin Board of County Commission, in Florida believes that local government should support economic growth by providing an incentive for County employment opportunities that will lead to the improvement in the quality of life for County residents, positive expansion of the economy in terms of new jobs and improvements to real and personal property, and creating jobs in such a way so as not to disadvantage existing businesses while recognizing that productive competition fosters economic growth. The Economic Development Ad Valorem Tax Exemption is a local option tax incentive for expanding or new businesses, which may be granted at the sole discretion of the Board of County Commissioners. Incentives could be provided to businesses of diverse sectors (aligned with the targeted business sectors, as updated) that would have a positive impact on the County s economy. Any exemption granted may apply up to one hundred percent (100%) of the assessed value per Section 9 and Section 12 of Article VII, of the Florida State Constitution, of all improvements to real property made by or for the use of a new business and of all tangible personal property of such new business, or up to one hundred (100%) of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the improvements to real property are made or the tangible personal property is added or increased after the date of the preliminary application or one year prior to the filing of the final application. Property acquired to replace existing property may not be considered to facilitate a business expansion. The exemptions may not apply to improvements to real property made by or for the use of new or expanding businesses when such improvements have been included on the tax rolls prior to the preliminary application or one year prior to the filing of the final application. The ability to receive an exemption for the period granted is conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business as defined in Section III.E. and H. throughout the entire exemption period. The applicant will be required to submit a report on an annual basis to the County evidencing satisfaction of this condition. The annual report shall be submitted on the attached form. In addition, any business granted an exemption will furnish to the County or its designee such information as the County or its designee may reasonably require for the purpose of determining continued performance by the business of the conditions stated in the exemption ordinance and the representations made in the application. 2 PDF Page 17 of 53
II. Enactment Authority Article VII, Section 3 of the Constitution of the State of Florida and Section 196.1995 Florida Statutes, empower the County to grant Economic Development Ad Valorem Tax Exemptions after the electors of the County, voting on the question in a referendum, authorize such exemptions. In a referendum held on this issue on XXXXXXX XX, 2010, the voters of Martin County authorized the County to grant Economic Development Ad Valorem Tax Exemptions. This exemption program is applicable in all areas of Martin County where the County is the taxing authority. The exemption applies only to taxes levied by Martin County, where the County is the taxing authority. The exemption does not apply to taxes levied by the school district or water management district, fire district or to taxes levied by the voters for the payment of bonds or other special taxes authorized by a vote of the electors pursuant to Section 9 and Section 12. Article VII, of the Florida State Constitution. The Ordinance (Ordinance No. XX-XX) that implements the tax abatement program is entitled Economic Development Ad Valorem Tax Exemption Ordinance of Martin County, Florida. Resolution No. XX-XXX provides additional guidelines for implementation of the Ad Valorem Tax Exemption Program. 3 PDF Page 18 of 53
III. Definition of Terms The following words, phrases, and terms shall have the same meanings attributed to them in current Florida Statutes and the Florida Administrative Code, except where the context clearly indicates otherwise: A. Applicant Any person, firm, partnership, or corporation that files an application with the Martin Board of County Commissioners seeking an economic development ad valorem tax exemption. B. Bonus exemption for employment of Martin County residents and Martin County contractors. 1. If a business can verify after the first year of exemption that sixty percent (60%) of its full-time employees have been Martin County residents for at least six (6) months prior to employment then the business shall be entitled to one additional year from the standard exemption as set forth on Attachment 1. 2. If a business can verify after the first year of exemption that eighty percent (80%) of its full-time employees have been Martin County residents for at least six (6) months prior to employment then the business shall be entitled to two additional year from the standard exemption as set forth on Attachment 1. 3. If a business can verify that it used a licensed general contractor whose principal place of business is located in Martin County to construct the improvements then the business shall be entitled to one additional year from the standard exemption as set forth on Attachment 1. C. Business Any activity engaged in by any person, firm, partnership, corporation, or other Business organization or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect. D. County Martin County. E. Department The Florida Department of Revenue. F. Expansion of an Existing Business: 1. As defined in Section 196.012(16), Florida Statutes, an Expansion of an Existing Business means: (a) (b) A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; Any business establishing twenty-five (25) or more jobs to employ twentyfive (25) or more full-time employees in this State, whose Sales Factor, as defined by Section 220.15(5), Florida Statutes, for the facility with respect 4 PDF Page 19 of 53
to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or (c) Any business located in an Enterprise Zone that increases operations on a site collocated with a commercial or industrial operation owned by the same business. 2. Any expansion of an existing business must increase operations on a site collocated with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than ten percent (10%) or an increase in productive output of not less than ten percent (10%). The ten percent (10%) requirement does not apply to Enterprise Zones. G. Extraordinary as determined by Martin Board of County Commissioners. H. Improvements Physical changes made to raw land, and structures placed on or under the land surface. I. New Business - As defined in Section 196.012(15), Florida Statutes, a new business means: 1. A Business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or 2. Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this State, whose Sales Factor, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or 3. An office space in this State owned and used by a corporation newly domiciled in this State; provided such office space houses fifty (50) or more full-time employees of such corporation; or 4. A business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statutes). 5. Any new business must first begin operation on a site clearly separate from any other commercial or industrial operation owned by the same Business. J. Property within a Community Redevelopment Area (CRA) Any property located within a CRA created pursuant to Section 163.330, et.seg. Florida Statutes where a portion of the County tax revenue will go directly to the CRA. K. Real Property Shall be defined in Section 192.001, Florida Statutes. L. Sales Factor As defined in Section 220.15.(5), Florida Statutes, the sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this State during the 5 PDF Page 20 of 53
taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. M. State State of Florida. N. Tangible Personal Property Shall be as defined in Section 192.001, Florida Statutes. 6 PDF Page 21 of 53
IV. Qualification for Tax Exemption Do You Qualify for a Tax Exemption Before completing an application, please read the following eligibility requirements that determine whether you qualify for a tax exemption under the Economic Development Ad Valorem Tax Exemption ordinance of Martin County, Florida (Ordinance No. 92-24), A. Ad valorem tax exemptions apply to expansion of businesses already situated in Martin County and to new businesses locating to Martin County. B. Expanding or new businesses must make a positive contribution to the economy of Martin County in terms of new jobs and improvements to real and personal property. C. Incentives are applicable to businesses of diverse sectors (aligned with targeted business sectors) with the exception of retail operations. D. Any and all exemptions granted must result in an economic benefit to the County, i.e., exemptions would support Martin County and its existing businesses. E. The applicant must be a person, firm, partnership, or other Business organization or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect. F. New Business 1. As defined in Section 196.012.(15), Florida Statutes, a new Business must meet the following criteria: (a) (b) (c) A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or Any business establishing twenty-five (25) or more jobs to employ twentyfive (25) or more full-time employees in this State, whose Sales Factor, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or An office space in this State owned and used by a corporation newly domiciled in this State; provided such office space houses fifty (50) or more full-time employees of such corporation; or (d) A Business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statutes). (e) Any new business must first begin operation on a site clearly separate from any other commercial or industrial operation owned by the same business. 7 PDF Page 22 of 53
G. Expansion of an Existing Business 1. As defined in Section 196.012(16) Florida Statutes, an Expansion of an Existing Business must meet the following criteria: (a) (b) (c) A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or Any business establishing twenty-five (25) or more jobs to employ twentyfive (25) or more full-time employees in this State, whose Sales Factor, as defined by Section 220,15(5) Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or Any business located in an enterprise zone that increases operations on a site collocated within commercial or industrial operation owned by the same business. 2. Any expansion of an existing business must increase operations on a site collocated with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than ten percent (10%) or an increase in productive output of not less than ten percent (10%). The ten percent (10%) requirement does not apply to Enterprises Zones. H. The exemptions shall not accrue to improvements to real property made by or for the use of new or expanding businesses when such improvements have been included on the tax rolls prior to the preliminary application or one year prior to the filing of the final application. I. Property acquired to replace existing property shall not be considered to facilitate a business expansion. J. No exemption shall be granted for the land upon which new or expanding businesses are to be located. K. The ability to receive an exemption for the period granted is conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business throughout the entire period. L. Any existing business in violation of any federal, State, or local law or regulation governing environmental matters is not eligible for an exemption. 8 PDF Page 23 of 53
V. Application for Exemption A. Any eligible person, firm, partnership, or corporation, which desires an exemption, must file with the Community Development Department of Martin County an application prescribed by the State Department (Form DR-418, and County Supplemental application). B. The application requests that the County adopt an ordinance granting the applicant the exemption and includes, at a minimum, the following: 1. The name and location of the new business or the expansion of an existing business; 2. A description of the improvements to the real property for which an exemption is requested and the date of commencement of construction of such improvement and estimated completion date; 3. A description of the tangible personal property for which an exemption is requested and the dates when such property was or is to be purchased. 4. Proof, to the satisfaction of the County, that the applicant meets the criteria for a new business or for an expansion of an existing business as defined in Section III; 5. The following information: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) anticipated total number of employees and new employees; expected number of employees who will reside in Martin County; average wage of employees (excluding the top executive s salary); type of Industry or business; environmental impact of business; anticipated volume of business or production; whether relocation or expansion would occur without the exemption; cost and demand for services; source and supplies (local or otherwise); whether business will be/is located in a community redevelopment area; 6. Other information deemed necessary by Martin County. C. If an Expansion of an Existing Business or new Business is locating in a Community Redevelopment Area, the Community Redevelopment Board shall be provided with a copy of the application for review and comment. Input from the Community Redevelopment Board will be considered in deciding whether an application is to be granted. Should the Community Redevelopment Board object to the granting of Tax Exemption, the agency may submit an objection in writing to the BOCC for its consideration. 9 PDF Page 24 of 53
VI. Exemption Application Process The fully completed Economic Development Ad Valorem Tax Exemption final application must be filed with the Community Development Department of Martin County by a representative of the company. The threshold for eligibility is whether the Business meets the definition of a new business or of an expansion of an existing business as defined in Section III, and one which is not an ineligible Business or industry. The County will take action on the final application, including the enactment of the required ordinance should the County decide to grant the exemption, within ninety (90) days from the date that a fully completed final application is accepted. During this 90-day period, interested agencies and parties will have an opportunity to review and comment on the application. To impact the November tax bill, the final application must be submitted by March 1 st of the same year. The following steps provide the applicant a reasonable understanding of Martin County Economic Development Ad Valorem Tax Exemption process and requirements. Step 1: Preliminary Application Submittal: It is recommended that anyone contemplating whether to file an exemption application must first contact the Business Development Board of Martin County, Inc. (BDBMC), and request a meeting to assess the feasibility of filing an exemption application and acquire assistance in completing the preliminary application. Step 2: Submission of Preliminary Application to the County: On behalf of the applicant, the representative of the company will submit one original of the State application, the County supplemental application, a one-page narrative describing the business, and appropriate attachments. The applicant will also submit a map identifying the location and configuration of the subject property with legal description. Step 3: Preliminary Eligibility and County Commission Resolution: The Community Development Department of Martin County will accept and review the application for preliminary eligibility. The Community Development Department of Martin County will review and notify the applicant of eligibility and/or any application deficiencies within thirty (30) days of submission. Step 4: Preparation of the Final Application: Upon receipt of the final application, the Community Development Department of Martin County will: (1) determine eligibility; (2) request the Property Appraiser to conduct its analysis; (3) conduct an economic impact analysis; and (4) advertise for a public hearing to consider adopting an exemption ordinance on behalf of the business. Step 5: Review, Analysis and Recommendation of the Property Appraiser and GRDRD: Within a 90-day period, copies of the application are to be reviewed by the Martin County Property Appraiser s Office and Martin County staff. Any legal issue will be referred to the County Attorney s Office for review and comment. The Property Appraiser will review the application and provide in writing the fiscal impact of granting the exemption, sign the State application, and forward to Community Development Department of Martin County. As required by Florida Statute the Property Appraiser s report will include the following: 10 PDF Page 25 of 53
1. The total revenue available to the County for the current fiscal year from ad valorem tax sources or an estimate of such revenue if the actual total available revenue cannot be determined; 2. The amount of revenue lost to the County for the current fiscal year by virtue of exemptions previously granted, or an estimate of such revenue if the actual revenue lost cannot be determined. 3. An estimate of the amount of revenue which would be lost to the County for the current fiscal year if the exemption applied for was granted had the property for which the exemption is requested otherwise been subject to taxation; and 4. A determination as to whether the property for which an exemption requested is to be incorporated into the new business or the expansion of an existing business, or into neither, which determination the Property Appraiser shall also affix to the face of the application. Upon request, the Department will provide the Property Appraiser such information as it may have available to assist in making this determination. Community Development Department of Martin County staff will review a copy of the application. Step 6: Preparation of the Exemption Ordinance: The Community Development Department of Martin County will forward to the County Attorney s Office for preparation of the Ordinance and for scheduling the exemption application and ordinance, including the report from the Property Appraiser. After consideration of the application and the report of the Property Appraiser on the application, the County may choose to adopt an ordinance granting the exemption to a new or expanding business. If granted, the ordinance shall include the following information: 1. The name and address of the new business or expansion of an existing business; 2. The total amount of revenue available to the County from ad valorem tax sources for the current fiscal year, the total amount of the revenue lost to the County for the current fiscal year by virtue of exemptions currently in effect, and the estimated amount of revenue attributable to the exemption granted to the new or expanding business. 3. The expiration date of the exemption, which is no more than ten (10) years or less (depending on the duration of the exemption granted) from the date the County enacts the ordinance granting the exemption; and 4. A finding that the business meets the definition of a new business or of an expansion of an existing business as set forth in Section III. 11 PDF Page 26 of 53
Step 7: The Guidelines for Determining the Percentage of Exemption. See attached Program Guidelines for point calculation using number of jobs, hourly wage and investment. Then go to attachment Chart A which defines the exemption guidelines for determining the tax exemption percentage per year for property located outside a CRA area. Property located will have the tax exemption on both Real Property and Tangible Personal Property. Note: These are guidelines only. Each exemption is determined on an individual case basis by the Board of County Commissioners. 12 PDF Page 27 of 53
VII. Contact Source for Assistance Exemption applications are available at the BDBMC at 1002 SE Monterey Commons Boulevard, Suite 203, Stuart FL 34996. Inquiries from Qualified Targeted Businesses regarding the tax exemption program will be handled by the BDBMC. However, the Property Appraiser s Office will handle inquiries that pertain to Property Appraiser information only. An applicant/agent who is trying to determine the viability of filing an application should contact the Business Development Board of Martin County, Inc. (BDBMC). Business Development Board of Martin County, Inc. (BDBMC) 1002 SE Monterey Commons Boulevard Suite 203 Stuart FL 34996 (772)221-1380 bdbmc@bdbmc.org Ronald Bunch, Executive Director 13 PDF Page 28 of 53
Martin County Ad Valorem Tax Exemption Program Program Guidelines New or Existing Business Number of jobs created Points 10-24 3 25-49 5 50-99 7 100-199 9 200+ 10 These new jobs will be phased in on the following schedule: Year One after Effective Date: Year Two after Effective Date: Year Three after the Effective Date: % or a minimum of jobs % or a minimum of jobs % or a minimum of jobs Note: Existing business must be a minimum of 10% increase in employees to qualify Average Hourly Wage Rate for New Employees Points Less than: $16.03 per hour -2 90% of average: $16.03 per hour 2 Average: $17.81 per hour 4 15% above the average: $20.48 per hour 6 50% above the average: $26.72 per hour 10 100% above the average: $35.63 per hour 12 Qualifying Average Hourly Wages are updated annually, coincident with the state entities associated with economic development incentive programs - Enterprise Florida, Inc. and the Office of Tourism, Trade and Economic Development (OTTED) and/or their successors. Capital Investment Points $150,000 $1,000,000 2 $1,000,001 - $5,000,000 4 $5,000,001 and up 6 Scoring - see Attachment 1 Adjustment Consideration #1: The Martin County Commissioners may consider an individual or company documentation indicating that the business is going to be critical to attracting other key businesses of that industry cluster; in those incidences, program guidelines may be adjusted on a case-by-case basis. Note: These are guidelines only. Each exemption is determined on an individual case basis by the Board of County Commissioners. 14 PDF Page 29 of 53
Martin County Board of County Commissioners Economic Development Ad Valorem Tax Exemption Application Ordinance No. XX-XX, Martin County Code of Ordinances Chapter 196, Florida Statues To be filed with the Community Development Department of Martin County Martin County, Florida, no later than March 1 of the year the exemption is desired to take effect. Please attach additional information, if necessary or requested. 1. Business Name: Mailing Address: city/zip 2. Name of person in charge or owner of Business: Telephone No.: ( ) Fax No.: ( ) 3. Location of Business (legal description and street address) of property for which this report is filed: 4. Date Business opened or will open at this facility: 5. a. Description of the improvements to real property for which this exemption is requested: b. Date of commencement of construction of improvements: 6. a. Description of the tangible personal property for which this exemption is requested and date when property was, or is to be, purchased: Class or Item Age Date of Purchase Original Value Cost Taxpayer s Estimate of Condition Taxpayer s Estimate of Fair Market Good Avg. Poor Condition Appraiser s Use Only 15 PDF Page 30 of 53
b. Average Value of Inventory on hand: c. Any additional person property not listed above for which an exemption is claimed must be returned on form DR-405 (Tangible Personal Property Tax Return) and a copy attached to this form. 7. Do you desire an exemption as a: New Business [ ] or as an Exemption of an Existing Business [ ] 8. Describe the Type or Nature of Your Business: 9. Trade Level (check as many as apply): [ ] Wholesale [ ] Manufacturing [ ] Professional [ ] Office [ ] Service [ ] Other 10. a. Number of new full-time employees to be employed in Martin County, Florida: b. If expansion of an existing business: (1) Net increase in employment (2) Increase in productive output resulting from this expansion (3) Number of Martin County residents employed by Business c. Average hourly wage 11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility one (1) location only divided by total sales Everywhere from this facility one (1) location only =. 12. For office space owned and used by a corporation newly domiciled in the state of Florida: Date of incorporation in Florida: a. Number of full-time employees at this location: 13. If requesting an exemption due to location in a slum or blighted area, please furnish such additional information as required by the Board of County Commission or Property Appraiser. I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida Statues. I agree to furnish such other reasonable information as the Board of County Commissioners, Community Development Department of Martin County, or the Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the information and valuation stated above by me is true, correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the taxpayer, his declaration is based on all information of which he has any knowledge.) DATE: SIGNED: (Preparer) SIGNED: (Taxpayer) (Preparer) TITLE: (Preparer s Telephone Number) 16 PDF Page 31 of 53
PROPERTY APPRAISER S USE ONLY 1. Total revenue available to the county or municipality for the current fiscal year from ad valorem tax sources: 2. Revenue lost to the County or municipality for the current fiscal year by virtue of exemptions previously granted under this section: 3. Estimate of the revenue which would be lost to the County or municipality during the current fiscal year if the exemption applied for were granted had the property for which the exemption is requested otherwise subject to taxation: 4. Estimate of the taxable value lost to the County if the exemption applied for were granted: Improvements to real property: Tangible Personal Property: 5. I have determined that the property listed above meets the definition, as defined in Section 196.012 (15) or (16), Florida Statues, as a New Business [ ], as an Expansion of an Existing Business [ ], or Neither [ ]. 6. Last year for which exemption my be applied: DATE: SIGNED: (Property Appraiser) RETURN TO BE FILED NO LATER THAN MARCH 1 17 PDF Page 32 of 53
Martin County Board of County Commissioners Economic Development Ad Valorem Tax Exemption Ordinance No. xx-xx, Martin County Code of Ordinances Chapter 196, Florida Statues SUPPLEMENTAL APPLICATION Applicant Name: NOTICE: This supplement is to be used by the Applicant to provide additional information required by the Economic Development Tax Abatement Ordinance xx-xxx, Board of County Commissioners, Martin County, Florida; and to provide other information requested by the Board of County Commissioners, Community Development Department of Martin County, and the entities that will review the application. Please provide a one page narrative describing the company and the relocation/expansion plans. 1. Length of exemption requested is a total of years (length of exemption approved is sole discretion of the Board of County Commissioners and commences on the adoption date of the ordinance granting the exemption). 2. Property Owner Name: Address: city/zip Telephone No.: ( ) 18 Fax No.: ( ) 3. Authorized Agent: Address: city/zip Telephone No.: ( ) Fax No.: ( ) 4. Type of Industry or Business: 5. Anticipated new capital investment as a result of expansion or relocation of Business: New construction: New tangible personal property: 6. Environmental impact of Business. (Identify the number of and type of environmental permits required as a result of this project: e.g. air, soil and water pollution, water and sewer, dredge and fill, stormwater, industrial waterway): 7. This relocation or expansion would not occur without the exemption: Yes [ ] No [ ] 8. Source of supplies (local or otherwise): % source of supplies County: % source of supplies Florida: % source of supplies out-of-state: 9. Business is/will be located in a community redevelopment area: Yes [ ] No [ ] Name of area: PDF Page 33 of 53
I hereby confirm the information provided by to the Board of County Commissioners, Martin County, Florida for the purpose of calculating the economic impact and benefit of the proposed tax abatement is true, accurate and complete. I further confirm that is not in violation of any federal, State or local law, or regulation governing environmental matters: DATE: SIGNED: (Preparer) SIGNED: (Taxpayer) (Preparer) TITLE: (Preparer s Telephone Number) Community Development Department of Martin County USE ONLY Economic Impact Analysis: Community Development Department of Martin County Staff s recommendation: Date: Signed: (print name and title) 19 PDF Page 34 of 53
Martin County Board of County Commissioners Economic Development Ad Valorem Tax Exemption Ordinance No. xx-xx, Martin County Code of Ordinances Chapter 196, Florida Statues ANNUAL REPORT Applicant Name: As required by the Economic Development Ad Valorem Tax Exemption Ordinance xx-xxx, Board of County Commissioners Martin County, Florida, this form is to be filed with the Community Development Department of Martin County so that they can forward to the Board of County Commissioners no later than January 31 of each year the exemption is desired. 1. Business Name: Mailing Address: city/zip 2. Name of person in charge or owner of Business: Telephone No.: ( ) Fax No.: ( ) 3. Location of Business (legal description and street address) of property for which this report is filed: 4. Date Business opened at this facility: 5. a. Description of the improvements to real property for which this exemption is requested: b. Date of commencement of construction of improvements: 6. a. Description of the tangible personal property for which this exemption is requested and date when property was purchased: (Provide this information on State form DR-405 (Tangible Personal Property) b. Average Value of Inventory on hand: 7. Have you maintained the definition of a New Business [ ] or an Exemption of an Existing Business [ ] [ ] Yes [ ] No 8. Describe the Type or Nature of Your Business: 9. Trade Level (check as many as apply): [ ] Wholesale [ ] Manufacturing [ ] Professional [ ] Office [ ] Service [ ] Other 10. a. Number of new full-time employees employed in Martin County, Florida: (1) Increase in productive output resulting from this expansion % (2) Number of Martin County residents employed 20 PDF Page 35 of 53
(3) Total number of hours worked during calendar year of exemption (4) Total gross wages paid during calendar year of exemption (less the top executive s salary) (5) Number of employees prior to filing for an exemption 11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility one (1) location only divided by total sales Everywhere from this facility one (1) location only =. 12. For office space owned and used by a corporation newly domiciled in the state of Florida: b. Date of incorporation in Florida: c. Number of full-time employees at this location: 13. If requesting an exemption due to location in a slum or blighted area, please furnish such additional information as required by the Board of County Commission or Property Appraiser. I agree to furnish such other reasonable information as the Board of County Commissioners, Martin County, Florida, may request in regard to the exemption. I hereby certify that the information and valuation stated by the above by me is true, correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the taxpayer, his declaration is based on all information for which he has any knowledge.) DATE: SIGNED: (Preparer) SIGNED: (Taxpayer) (Preparer) TITLE: (Preparer s Telephone Number) PROPERTY APPRAISER S USE ONLY 7. Estimate of the revenue which will be lost to the County during the current fiscal year had the exempt property otherwise been subject to taxation: 8. Estimate of the taxable value lost to the County: Improvements to real property: Tangible Personal Property: DATE: SIGNED: (Property Appraiser) Community Development Department of Martin County USE ONLY Total number of employees: Current hourly wage: RETURN TO BE FILED NO LATER THAN JANUARY 31 21 PDF Page 36 of 53
22 PDF Page 37 of 53
ATTACHMENT 1 Martin County Ad Valorem Tax Exemption Program ` Chart A This exemption is on both Real Property and Personal Property Total Points Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 7-9 100% 75% 50% 25% 0% 0% 0% 0% 0% 0% 10-12 100% 80% 60% 40% 20% 0% 0% 0% 0% 0% 13-15 100% 90% 80% 60% 40% 20% 0% 0% 0% 0% 16-18 100% 90% 80% 70% 60% 40% 20% 0% 0% 0% 19-21 100% 90% 80% 70% 60% 50% 40% 20% 0% 0% 22-24 100% 90% 80% 70% 60% 50% 40% 30% 20% 0% 25+ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% This Chart is a guideline only. Each exemption is considered on an individual case basis by the BOCC. 23 PDF Page 38 of 53
Tax Abatement Programs Allowed Under Florida Statutes (Chap. 196.1995) Requires Voter Referendum For Approval Discretionary incentive only for targeted businesses Each applicant subject to Commission approval Return on investment calculated using IMPLAN Inducement-based program and the ability to receive an exemption for the period granted is conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business throughout the entire period. 1002 SE Monterey Commons Boulevard Suite 203 Stuart, Florida 34996 Phone: 772-221-1380 Fax: PDF 772-221-1381 Page 39 of 53 Email: info@bdbmc.org www.bdbmc.org
Tax Abatement DOES Help Martin County compete to retain existing targeted businesses and attract new companies that bring high-quality jobs Provides County with tool for retaining existing targeted businesses and recruiting new targeted businesses by allowing temporary tax relief Improves perception and sends message that Martin County is serious about creating jobs and alleviating record high unemployment Increases Martin County s competitiveness in global arena PDF Page 40 of 53
Tax Abatement DOES Diversifies and increases County s tax base County receives full tax revenue once abatement period is over and becomes fully taxable County immediately receives additional sales taxes from increased business and taxes received on non-abated assessed values Immediately increases tax revenue for other entities like schools, water management districts, etc. abatementapplies only to County taxes PDF Page 41 of 53
Vacant land taxable value $1,000,000 PDF Page 42 of 53
Vacant land taxable value $1,000,000 Ad Valorem 2009 Millage Rates Taxes COUNTY 5.3090 $5,309.00 SCHOOL 6.7030 $6,703.00 OTHER DISTRICTS 3.8467 $3,846.70 * Other Districts Ad Valorem: Countywide Voted Debt, Children s Services, SFWM, Fla. Inland and MSTU PDF Page 43 of 53
Construct new building value $1,500,000 PDF Page 44 of 53
Total Taxable Value Land + Building = $2,500,000 Vacant Land Without Tax Abatement Building/Land With Tax Abatement Building/Land Without Tax Abatement COUNTY $5,309.00 $5,309.00 $13,272.50 SCHOOL $6,703.00 $16,757.50 $16,757.50 OTHER DISTRICTS $3,846.70 $9,616.75 $9,616.75 PDF Page 45 of 53
Martin County Ad Valorem Tax Exemption Program Jobs created Points Capital Investment Points 10-24 3 $150,000 $1,000,000 2 25-49 5 $1,000,001 - $5,000,000 4 50-99 7 $5,000,001 and up 6 100-199 9 200+ 10 Note: Existing business must be a minimum of 10% increase in employees to qualify Average Hourly Wage Rate for New Employees Points Less than: $16.03 per hour -2 90% of average: $16.03 per hour 2 Average: $17.81 per hour 4 15% above the average: $20.48 per hour 6 50% above the average: $26.72 per hour 10 100% above the average: $35.63 per hour 12 Qualifying Average Hourly Wages are updated annually, coincident with the state entities associated with economic development incentive programs - Enterprise Florida, Inc. and the Office of Tourism, Trade and Economic Development (OTTED) and/or their successors. PDF Page 46 of 53
Martin County Ad Valorem Tax Exemption Program Total Points Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 7-9 100% 75% 50% 25% 0% 0% 0% 0% 0% 10-12 100% 80% 60% 40% 20% 0% 0% 0% 0% 13-15 100% 90% 80% 60% 40% 20% 0% 0% 0% 16-18 100% 90% 80% 70% 60% 40% 20% 0% 0% 19-21 100% 90% 80% 70% 60% 50% 40% 20% 0% 22-24 100% 90% 80% 70% 60% 50% 40% 30% 20% 25+ 100% 90% 80% 70% 60% 50% 40% 30% 20% Year 10 0% 0% 0% 0% 0% 0% 10% Adjustment Consideration #1: The Martin County Commissioners may consider an individual or company documentation indicating that the business is going to be critical to attracting other key businesses of that cluster; in those incidences, program guidelines may be adjusted on a case-by-case basis. Note: These are guidelines only. Each exemption is determined on an individual case basis by the Board of County Commissioners. This exemption is on both Real Property and Personal Property PDF Page 47 of 53
Tax Abatement DOES NOT Give away any taxpayer dollars -based on positive Return on Investment Waive or eliminate other fees Waive or eliminate infrastructure requirements under County s land development regulations Reduce or eliminate current taxes on real property PDF Page 48 of 53
Tax Abatement Eligibility Return on investment pre-determined using IMPLAN software Inducement-based program & the ability to receive an exemption for the period granted is conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business throughout the entire period. Abatement applies only to improvements made to existing real property and tangible personal property by the company Abatement applies only to County taxes NOT to Schools, Cities, Special Districts, or Bonds PDF Page 49 of 53
New Business Criteria According to Florida Statute Create 10 or more full-time jobs in manufacturing or industrial business (targeted business) Create 25 or more full-time jobs for companies that ship more than 50% of sales out of state (targeted business) Office space for a newly domiciled corporation, providing that the office space houses 50 or more full-time employees Any business that locates in an enterprise zone PDF Page 50 of 53
Existing Business Criteria According to Florida Statute Company expansion that creates 10 or more full-time jobs in manufacturing or industrial business (targeted business) Any expansion of commercial or industrial business that creates 25 or more full-time jobs for companies that ship more than 50% of sales out of state; net increase of employment of not less than 10% (targeted business) Any business located in an enterprise zone that increases operations PDF Page 51 of 53
Counties which have approved local option ad valorem tax abatement PDF Page 52 of 53