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At the last Economic Development Commission meeting a question was asked whether the ad valorem tax exemption available under Section 196.1995, F . S . , for new or expanding businesses which created at least 10 jobs would be available to property owned :by the developers who construct the facilities for the new or expanded business to operate in, even if the developers themselves would not be generating the new jobs. For the following reasons I believe that the tax advantages would be available to the developer. Subparagraph 5 of Section 196.1995 , F . S . ,- holds that the ad valorem tax. exemption applies for "up to 100 percent of the assessed value of all improvements to real property made by or for the use of a new business..." (e . s .) . Thus the determining factor is not who owns the property or who builds the building, but why the facilities were built; that is, if the facilities were built for a new or expanded business then the tax advantages are available to the property. There does not seem to be a requirement, however, that the benefits of the tax advantages be made available by the developer to the new business tenant. Further support for this position is the fact that subparagraph 7 lists the requirements that an applicant must meet before being granted a tax exemption and there is no mention of "who" built or owns the building. These requirements do include: a) the name of the new business; b) a description of the improvements to real property for which an exemption is requested and the date of commencement of construction of such improvements; c) description of tangible personal property; and d) proof that the applicant is is a new business. In addition, subparagraph 8 requires that the property appraiser make a report to the County which includes a determination by him as to whether the property for which the exemption is requested is to be incorporated into a new business or an expansion of an existing business. Again, there is no mention of who built or owns the building. Thus, if the County Commission can make a finding of fact that the improvements to real property are "made by or for the use of" a new business, or expansion of an existing one, the tax exemptions available under the law may be granted, regardless of who owns or built the building. TO: James E. Chandler County Administrator (PAR HEAD CONCURRENCE Obert Keating, AICP Community Develop nt D ector FROM: Sasan Rohani, AICP � If. Chief, Long -Range Planning Section DATE: May 7, 1996 RE: CONSIDERATION OF TAX ABATEMENT PROGRAM It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at their regular meeting of May 14, 1996. INTRODUCTION Competition among communities vying for economic development prospects is common phenomena, occurring on a global as well as a 25 May 14, 1996 $Dor 98 pmf_ 30