HomeMy WebLinkAbout2010-014ORDINANCE NO. 2010-014
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA, ESTABLISHING TITLE XI, CODE
OF ORDINANCES, ENTITLED "ECONOMIC DEVELOPMENT AD
VALOREM TAX EXEMPTION"; PROVIDING FOR THE
ESTABLISHMENT OF AN ECONOMIC DEVELOPMENT AD VALOREM
TAX EXEMPTION; PROVIDING FOR A SUNSET DATE; AND
PROVIDING FOR AN EFFECTIVE DATE UPON APPROVAL OF THE
ELECTORS OF INDIAN RIVER COUNTY.
BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA:
SECTION 1. There is hereby created a new Title XI of the Indian River County Code
(the "Code"), entitled "Economic Development Ad Valorem Tax Exemption."
SECTION 2. Title XI of the Code is hereby created to read as follows:
TITLE XI. ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION
Section 1100.01. Short Title.
Title XI shall be known as the Indian River County Economic Development Ad
Valorem Tax Exemption Ordinance.
Section 1100.02. Enactment Authority.
Article VII, section 3, of the Constitution of the State of Florida and section 196.1995,
Florida Statutes, authorize the County to grant economic development ad valorem tax
exemptions to new businesses and expansions of existing businesses after the electors
of the County, voting on the question in a referendum, authorize such exemptions.
Section 1100.03. Findings of Fact.
(a) An important function of local government is the promotion of a strong local
economy by providing financial incentives that will encourage new businesses
to locate and existing businesses to expand within its jurisdiction, thereby
creating new jobs, improvements to real property, and additions to tangible
personal property.
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ORDINANCE NO. 2010- 014
(b) The health, welfare and general well-being of the citizens of Indian River County
will be enhanced by the location of new businesses and the expansion of
existing businesses within Indian River County.
(c) The Board of County Commissioners determines that the granting of economic
development ad valorem tax exemptions to new businesses locating in Indian
River County and to existing businesses expanding in Indian River County will
promote and strengthen the local economy and thereby enhance the health,
welfare and general well-being of the citizens of Indian River County.
Section 1100.04. Definitions of Terms.
The following words, phrases, and terms shall have the meanings set forth below.
To the extent that such meanings incorporate provisions of Florida Statutes, such
meanings are intended to incorporate the provisions of Florida Statutes, as amended
from time to time:
(a) Applicant — Any person or entity who files an application requesting an
Economic Development Ad Valorem Tax Exemption pursuant to this ordinance.
(b) Application — A written application on the form prescribed by the Department,
together with any supplemental form prescribed by the County and any
additional information requested by the County.
(c) Board — The Board of County Commissioners of Indian River County.
(d) Brownfield Area — An area designated as a brownfield area pursuant to section
376.80, Florida Statutes.
(e) Business — Any activity engaged in by any person or entity, with the object of
private or public gain, benefit or advantage, either direct or indirect.
(f) County — Indian River County, Florida.
(g) Department — The Florida Department of Revenue.
(h) Director — The Indian River County Community Development Director, or his/her
designee.
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(i) Enterprise Zone — An area designated as an enterprise zone pursuant to
section 290.0065, Florida Statutes.
Q) Exemption or Economic Development Ad Valorem Tax Exemption — An ad
valorem tax exemption granted by the Board in its discretion to a qualifying New
Business or Expansion of an Existing Business pursuant to this ordinance, and
as authorized by Article VII, section 3 of the Constitution of the State of Florida
and section 196.1995, Florida Statutes.
(k) Expansion of an Existing Business —
(1) 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
(2) 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 in section 220.15(5), Florida Statutes, for the facility with respect
to which it requests an Exemption is less than 0.50 for each year the
Exemption is claimed; provided that such Business increases operations on
a site colocated 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; or
(3) Any Business located in an Enterprise Zone or Brownfield Area that
increases operations on a site colocated with a commercial or industrial
operation owned by the same Business.
(1) Exemption Agreement — A written agreement entered into between the County
and an Applicant receiving an Exemption pursuant to this ordinance, as
described more fully in section 1100.09 below.
(m) Exemption Ordinance — An ordinance granting an Exemption, as described
more fully in section 1100.08 below.
(n) Exemption Requirements — All requirements and conditions which must be
satisfied for the granting and continuation of an Exemption, including those set
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forth in general law, this ordinance, the Exemption Ordinance and the
Exemption Agreement.
(o) Improvements — Physical changes made to real property consisting of
structures or other improvements placed on or under the land surfaces.
(p) New Business —
(1) 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
(2) 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 in section 220.15(5), Florida Statutes, for the facility with
respect to which it requests an Exemption is less than 0.50 for each year
the Exemption is claimed; or
(3) An office space in this County 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; 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; or
(4) Any Business located in an Enterprise Zone or Brownfield Area that first
begins operation on a site clearly separate from any other commercial or
industrial operation owned by the same Business.
(q) Real Property — Shall have the meaning set forth in section 192.001(12), Florida
Statutes.
(r) Sales Factor — The sales factor is a fraction the numerator of which is the total
sales of the Applicant in this State during the taxable year or period and the
denominator of which is the total sales of the Applicant everywhere during the
taxable year or period, as defined in section 220.15(5), Florida Statutes.
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(s) Tangible Personal Property — Shall have the meaning set forth in section
192.001(11)(d), Florida Statutes.
(t) Violation of Law — A violation of any federal, state or local law which, in the sole
discretion of the Board, is sufficiently serious that it would not be in the best
interests of the citizens of the County that the violator be granted or continue to
receive the benefits of an Exemption.
Section 1100.05. Establishment of Economic Development Ad Valorem Tax
Exemption.
(a) Subject to the remaining provisions of this ordinance, there is hereby established
an Economic Development Ad Valorem Tax Exemption for certain ad valorem
taxes levied by the County. The Exemption is a local option tax incentive for a
qualifying New Business or Expansion of an Existing Business which may be
granted or refused at the sole discretion of the Board.
(b) At the sole discretion of the Board, the Exemption may be granted for (i) 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 of all Tangible Personal
Property of such New Business, and (ii) up to one hundred (100%) percent 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
Exemption Ordinance is adopted.
(c) The term of the Exemption shall be up to ten (10) years, as set forth in the
Exemption Ordinance; provided, however, that the continuation of the
Exemption from year to year shall be contingent upon the Applicant's continued
compliance with the Exemption Requirements.
(d) The Exemption shall not apply to Improvements to Real Property or to Tangible
Personal Property which were included on the tax rolls prior to the effective date
of the Exemption Ordinance.
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(e) Property acquired to replace existing property shall not be considered to
facilitate an Expansion of an Existing Business.
(f) No Exemption shall be granted for the land upon which a New Business or
Expansion of an Existing Business is to be located.
(g) Any Exemption granted for a New Business or Expansion of an Existing
Business is transferable between businesses, provided, the transferee Business
(i) continues to comply with all Exemption Requirements; and (ii) assumes in
writing all of the obligations of the transferor Business under the Exemption
Agreement.
(h) The Exemption shall apply only to taxes levied by the County, except that the
Exemption shall not apply to taxes levied for the payment of bonds, or to taxes
authorized by a vote of the electors pursuant to section 9(b) or section 12 of
Article VII of the Constitution of the State of Florida.
(i) The Exemption shall not be available to any Business which, at any time within
two (2) years prior to filing of the Application, or at any time subsequent to filing
of the Application but prior to adoption of the Exemption Ordinance, was found
guilty of a Violation of Law.
Q) The decision of the Board to grant or deny an Exemption shall be a legislative
decision. No precedent shall exist by reason of any decision to grant or deny an
Exemption.
Section 1100.06. Application for Exemption.
(a) Any Business requesting an Exemption shall file an Application with the Indian
River County Community Development Department.
(b) The Application must be filed no later than March 1 of the year in which the
Exemption is desired to take effect.
(c) There shall be no fee for filing the Application.
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Section 1100.07. Consideration of Application.
(a) Within ten (10) days of receipt of a completed Application, the Director shall
review the Application and determine whether it facially meets all requirements
to qualify for an Exemption. If the Director determines that the Application
facially does not meet all requirements to qualify for an Exemption, the Director
shall so notify the Applicant in writing and the applicant will have thirty (30) days
from the date of such notice to appeal the Director's determination directly to the
Board.
(b) If the Director determines that the Application facially does meet all
requirements to qualify for an Exemption, the Director shall promptly deliver a
copy of the Application to (1) the Property Appraiser who, within thirty (30) days
of receipt, shall provide a report as set forth in subsection (c) below, (2) the
Indian River County Economic Development Council which, within thirty (30)
days of receipt, shall provide written comments, if any, (3) the Indian River
County Chamber of Commerce which, within thirty (30) days of receipt, shall
provide a report of the positive economic impacts of the proposed New
Business or Expansion of an Existing Business, and (4) if applicable, any
incorporated municipality, Community Development Agency, Brownfield Area
Advisory Committee, or other such agency or committee having jurisdiction with
respect to the subject real property. Within thirty (30) days of receipt, such
municipality, agency or committee shall provide written comments, if any. All
written comments shall be provided to the Director. Within sixty (60) days of
receipt of the completed Application, the Director, consulting with other
departments of the County as necessary, shall conduct an analysis of the
Application and prepare a written recommendation to the Board.
(c) 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, or an estimate of such revenue if the actual total
revenue available cannot be determined;
(2) Any revenue lost to the County for the current fiscal year by virtue of
exemptions previously granted under this section, or an estimate of such
revenue if the actual revenue lost cannot be determined;
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(3) An estimate of the revenue which would be lost to the County during the
current fiscal year if the Exemption applied for were 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 is
requested is to be incorporated into a New Business or the Expansion of
an Existing Business, as defined in section 196.012(15) or (16), Florida
Statutes, or into neither, which determination the Property Appraiser shall
also affix to the face of the Application. Upon the request of the Property
Appraiser, the Department shall provide to him/her such information as it
may have available to assist in making such determination.
(d) Within thirty (30) days of completion of the reports or comments set forth in
subsections (b) and (c) above, the Director shall present the Application to the
Board together with the Property Appraiser's report, the Director's analysis and
recommendation, and any written comments received. Based upon the
materials received, and applying the guidelines set forth in subsection (e) below,
the Board shall decide in its sole discretion either to proceed forward toward the
adoption of an ordinance granting the Exemption, or to deny the Application.
(e) Any recommendation of the Director or decision of the Board shall take into
consideration the following factors:
(1) The number of new jobs projected to be established in the County
(2) The average wage paid with respect to the new jobs
(3) The estimated amount of capital investment to be made by the Business
in the County
(4) The extent to which the Business may qualify as (i) an Innovation
Business, as defined in section 288.1089(2)(j), Florida Statutes, (ii) a
business in a targeted industry as identified from time to time by the
Board, or (iii) a business which may otherwise encourage the location or
expansion of other businesses in the County
(5) The extent to which the Business is likely to procure materials or supplies
from local businesses
(6) The net positive contribution to the local economy
In addition to the above factors, the Board may consider any other activity or factor
that relates to economic development within the County.
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Section 1100.08. Ordinance Granting Exemption.
An Exemption Ordinance shall be adopted in the same manner as any other
ordinance of the County, and shall include the following:
(a) The name and address of the New Business or Expansion of an Existing
Business to which the Exemption is granted;
(b) The total amount of revenue available to the County from ad valorem tax
sources for the current fiscal year, the total amount of revenue lost to the
County for the current fiscal year by virtue of Exemptions currently in effect, and
the estimated revenue loss to the County for the current fiscal year attributable
to the Exemption of the Business named in the ordinance;
(c) The amount of the Exemption, stated as a percentage of the assessed value of
all Improvements or tangible personal property subject to the Exemption;
(d) The period of time for which the Exemption will remain in effect and the
expiration date of the Exemption; and
(e) A finding that the Business named in the Exemption Ordinance meets the
requirements of section 196.012(15) or (16), Florida Statutes.
Section 1100.09. Exemption Agreement.
No Exemption granted hereunder shall be effective until the Business enters into an
Exemption Agreement with the County. The Exemption Agreement shall contain (1) a
clear acknowledgment by the Business that the Exemption shall continue to exist only
for so long as the Business continues to meet all Exemption Requirements, and (2)
such other matters required by the County.
Section 1100.10. Continuing Performance.
(a) The Business shall continue to meet all Exemption Requirements during the
term of the Exemption;
(b) No later than March 1 of each year during the term of the Exemption, the
Business shall provide an annual report to the Director which shall certify and, if
requested by the Director, contain satisfactory proof, that the Business
continues to meet all Exemption Requirements;
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(c) The Business shall timely comply with all requirements of section 196.011,
Florida Statutes during the term of the Exemption; and
(d) The Business shall immediately advise the County of any failure by the
Business to meet all Exemption Requirements.
Section 1100.11. Revocation of Exemption.
(a) The Board may revoke or revise the Exemption at any time if the Board
determines in its sole discretion that (1) the Business no longer meets all of the
Exemption Requirements, (2) the Application or any Annual Report contains a
material false statement, such that the Exemption likely would not have been
granted or continued if the true facts had been known, or (3) the Business is
found guilty of a Violation of Law; and
(b) If it is determined that the Business was not in fact entitled to an Exemption in
any year for which the Business received an Exemption, the County, Property
Appraiser or Tax Collector shall be entitled to recover all taxes not paid as a
result of the Exemption, plus interest at the maximum rate allowed by law, plus
all costs of collection, including, without limitation, reasonable attorney's fees.
Section 1100.12. Applicability.
This ordinance shall be applicable throughout the incorporated and unincorporated
areas of Indian River County.
Section 1100.13. Sunset Date.
Pursuant to section 196.1995, Florida Statutes, this ordinance shall expire on
November 2, 2020, ten (10) years after the date such authority to grant Exemptions was
submitted to the electors of the County voting in a referendum. The expiration of the
ordinance shall not affect the continued existence of any Exemption granted prior to
November 2, 2020.
SECTION 3. Severability.
If any provision of this title is held invalid, the invalidity shall not affect other
provisions which shall be given effect without the invalid provision. To this end, the
provisions of this title are declared severable.
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SECTION 4. Effective Date.
This ordinance shall become effective on November 2, 2010 only if a majority vote
"yes" in favor of the authority of the Board to grant property tax exemptions to new
businesses and expansions of existing businesses, at the referendum scheduled for
November 2, 2010. If a majority vote "no" against such authority, this ordinance shall be
null and void.
This ordinance was advertised in the Vero Beach Press Journal on the 11th day of
June , 2010, for a public hearing to be held on the 22nd day of June , 2010, at
which time it was moved for adoption by Commissioner Davis —,seconded by
Commissioner F1 escher , and adopted by the following vote:
Chairman Peter D. O'Bryan Aye
Vice Chairman Bob Solari Aye
Commissioner Wesley S. Davis Aye
Commissioner Joseph E. Flescher Aye
Commissioner Gary C. Wheeler Aye
The Chairman thereupon declared the ordinance duly passed and adopted this
22 day of June 2010.
ATTEST: Jeffrey K. Barton, Clerk
B'
Deputy
BOARD OF COUNTY COMMISSION
INDIAN RIVER COUNTY, FLORIDA
"iter D. O'Bryan, Chair an
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY
BY( ,e lam. I ✓ —
ALAN S. POL CKWICH
COUNTY ATTORNEY
EFFECTIVE DATE: The effective date of this ordinance is November 2, 2010 if a
majority vote "yes" in favor of the authority of the Board to grant property tax exemptions
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to new businesses and expansions of existing businesses, at the referendum scheduled
for November 2, 2010.
ACKNOWLEDGED by the Department of State of the State of Florida this day of
, 2010.
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