BCC Adopts Policy on Business Relocation Incentives
At the September 4 BCC meeting, policy guidelines were approved to determine eligibility to receive property tax rebate incentives for businesses considering relocating within Marion County. The key provisions of the guidelines are:
(1) Allows businesses to apply for rebates of 50% of the amount if their property taxes increase. The figure is 75% if the business locates within the city of Ocala.
(2) Businesses must guarantee to provide at least 10 new jobs that pay 115% of the average county or state wage, whichever is lower. The jobs must be filled within the first year and within a target industry as defined by state standards.
(3) Applicants for rebates must agree to make at least $300,000 in capital improvements within the first year and complete construction within a specified amount of time.
(4) Businesses must pay their property taxes and meet the other guidelines before any rebate grants are paid.
(5) Businesses must apply annually and prove that they continue to meet the guidelines for receiving grants.
Click on the following link to read the Star-Banner’s take on the new guidelines:
http://www.ocala.com/article/20070905/OPINION/209050305/1008/OPINION
What do you think about the new policy? Do you think it might have been useful in the E- One situation if it had been available at that time?
posted by Blog Master @ 5:07 PM
15 Comments:
I’m no financial wizard, but I can’t imagine that the new guidelines would make up the $26 million that e-one asked for. I’d like to see what are some potential tax rebate figures that e-one might have got under the new policy.
If commercial property values increase substantially over the years, and there is no cap on the number of years rebates can be paid to a company, this policy could result in some sizable amounts of lost tax revenue.
I assume the powers who thought this up have accounted for that or there are some provisions covering this not yet publicized.
If you want to see the County Ordinance creating the guidelines, copy and paste the link below:
http://agendas.marioncountyfl.org/cache/00001/350/9C.PDF
P.S.: If you have Windows Internet Explorer, click on the second link that appears in your explorer window after copy/paste.
Didn't E-1 want a large amount of cash incentives and upfront? Don't think the tax break would have been enough to keep the E-1 thing from still being contentious. Who would give them the money if the tax break wasn't enough? Guess the new policy would give the County some cover by telling companies go get your cash incentives elsewhere, we can only give you tax relief.
That's exactly how it should be. Give them tax breaks but no taxpayer cash. The cash part of the deal was what I didn't like about E-One.
I'll give the policy an 8 out of 10 rating.
A joke of a policy! If a company wants to locate here and will help our economy, they will ignore the policy and ask for what they need and is being offered them in other places.
A feel good policy at best.
Who's idea was this?
Andy Kesselring---Cty. Commiss.
I should have known.
E One will be back for round two next year. I'd count on it. They'll want more than tax credits.
That's likely. Based on what a friend at E-One tells me.
A plan for getting more high paying businesses here would be better. Our economy could sure use them.
To Anon. 11:18 PM - What do you consider "higher paying jobs". The minimum wage is $6.67 (which is ridiculous). We start our employees at $10.00 (plus bonus money, mileage, insurance). What does Wal-Mart, E-one, start their employees at?
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