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u • Definition ,Authorized by Article VII; Section 3 of the Florida Constitution and Chapter 196.1995, Florida Statutes, property tax abatement may be established only through approval of a referendum. Subsequent to approval of such a referendum, the Board of County Commissioners, upon a majority vote in favor of such authority, may exempt from ad valorem taxation: • "...up to 100 percent 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 100 percent of the assessed value of all added improvements to real property made to facilitate the 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." The authority to grant exemptions under this section will expire 10 years after the date such authority is approved in an election. Any such exemptions approved by the Board of County Commissioners under this program apply only to county taxes and do not apply to school district taxes, municipal taxes, independent special district taxes, or voted taxes. As of March 1, 1996, 23 local governments (counties and cities) in the state had passed a tax abatement program. • County History On December 22, 1992, the Board of County Commissioners voted to hold a referendum to authorize the use of tax abatements as an economic development incentive. On April 13, 1993, a countywide special election was held by mail ballot to decide if the county should offer tax abatements to new and expanding businesses in the county. The referendum was defeated by a 52 to 48 percent margin. According to local newspaper articles, several issues contributed to the defeat of the referendum. The primary issue was that the voters did not fully understand the proposed tax abatement referendum. Besides the lack of understanding was a concern that the proposed tax abatement ordinance offered property tax exemption to certain types of retail commercial businesses. DESCRIPTION AND CONDITIONS Upon securing approval by a voter referendum, a local government may grant eligible new and expanding businesses tax exemptions of up to 100 percent of the value of qualifying real and personal property for up to 10 years. The authority to grant tax exemptions will expire 10 years after the date such authority is approved in an election. In structuring a referendum and establishing a program, the Board of County Commissioners has the authority to establish the criteria for providing tax abatements to new or expanding industrial businesses. Such criteria, however, must not conflict with the standards in Sec. 196.1995 F.S. 27 May 14, 1996 d� 9