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s � � <br />LENGTH OF TIME <br />1 2 3 9 5 6 7 8 9 10 otal <br />Taxes Collected on Agricultural Land <br />Assuming that Property Remains in Agricultural Use <br />- General <br />Fund <br />$4301$1,128 <br />430 430 430 <br />$430 430 <br />430 $430 430 <br />$430 4,300 <br />- MSTU <br />162162 <br />162 162 <br />16Z 162 <br />162 162 162 <br />162 1,620 <br />- ESD <br />23131 <br />$231 231 <br />$231 231 <br />231 231 231 <br />231 2,310 <br />- Mise <br />1,128 <br />S1,128 1,128 <br />$1,128 1,128 <br />1,128 1,128 1,128 <br />$1,128 11,280 <br />otal taxes <br />aid on <br />$1,951 <br />51,951 $1,951 1,951 <br />1,951 1,951 <br />1,951 1,951 1,951 <br />1,951 19,510 <br />griculture <br />land <br />EFFECT OF TAR ABATEMENT <br />Assumptions: <br />- The county provides 1004r exemption for the first 5 years and then reduces the exemption <br />percentage by 20 percentage points each year for the next 5 years. <br />- Millage rates and taxable value remain flat over the ten years of analysis. Fiscal Year 1995/96 <br />millage rates are used. <br />County Millage Tax <br />General Fund 4.2999 -Can be abated <br />MSTU 1.6236 -Can be Abated <br />Emer. Serv. Dist. 2.3129 -Can be Abated <br />Misc. Taxing Auth. 11.2793 -Can Not Be Abated <br />Ten year totals are in current dollars <br />Assume company builds within the unincorporated area - tax code 3a. <br />Assessed value of developed land: $1,000,000 <br />Improvements Value: $1,000,000 <br />• Terms and Conditions of Tax Abatement Program <br />As previously mentioned, the Board of County Commissioners has the <br />authority to determine the tax abatement program's criteria for <br />each industrial business applying for tax abatements. The tax <br />abatement program's criteria will affect the type and number of <br />businesses utilizing the program and the amount of tax revenue that <br />the county will lose. <br />In establishing a tax abatement program, the Board of County <br />Commissioners will determine the maximum length of time that a <br />business will be eligible to receive a tax abatement. According to <br />state law, this may be up to ten years. Overall, the length of the <br />abatement will determine the amount of tax not received by the <br />county; the shorter the term, the less tax revenue will be lost. <br />Conversely, the longer the term, the more valuable tax abatement is <br />as an economic development incentive. <br />Besides the length of the tax abatement term, the Board also must <br />determine the percent of the total eligible taxes that may be <br />abated, up to 100%. The percent of taxes abated will also affect <br />the amount of revenue that the County will forgo with the tax <br />abatement program. Generally, the lower the percent, the less tax <br />revenue will be lost. <br />31 <br />moo' <br />May 14, 1996 moo '36 <br />