Loading...
HomeMy WebLinkAbout1996-056A7T'ACFIt 2 RESOLUTION NO. 96- 56 A RESOLUTION OF INDIAN RIVER COUNTY, FLORIDA, CREATING "ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS" TO ENCOURAGE ECONOMIC DEVELOPMENT IN THE COUNTY; ESTABLISHING A PROCESS FOR OBTAINING AN EXEMPTION FROM CERTAIN AD VALOREM TAXATION FOR CERTAIN NEW AND EXPANDING BUSINESSES; PROVIDING DEFINITIONS; PROVIDING CONDITIONS; PROVIDING PROCEDURES FOR APPLICATION FOR EXEMPTION; PROVIDING ORDINANCE REQUIREMENTS; PROVIDING FOR CONFLICTING PROVISIONS; SEVERABILITY AND APPLICABILITY; EFFECTIVE DATE; AND ADOPTION WHEREAS, Indian River County's average unemployment rate has been consistently higher than the state's unemployment rate; and WHEREAS, the Board of County Commissioners has made a determination that one of the ways to reduce the unemployment rate is to attract new businesses and industries to the county; and WHEREAS, the Board of County Commissioners has determined that providing incentives such as property tax exemption will enhance the county's prospects for attracting new businesses and industries; and WHEREAS, Section 196.1995, Florida Statutes, provides that the Board of County Commissioners may by referendum be authorized to grant economic development ad valorem tax exemptions pursuant to Section 3, Article VII of the State Constitution; and WHEREAS, Section 196.012 (15) or (16), Florida Statutes, defines "new business" and "expansion of an existing business", which are the type of businesses which may be offered tax exemptions under section 196. 1995(2); and 1 WHEREAS, the Board finds that granting certain ad valorem tax exemptions is in the best interest of the citizens of Indian River County, Florida, NOW, THEREFORE BE IT RESOLVED by the Board of County Commissioners of Indian River County, Florida that: Hereby, the county created an "Economic Development Ad Valorem Tax Exemptions Program," to read as follows: Section 1.01 Short Title This resolution shall be known as the "Economic Development Ad Valorem Tax Exemption resolution." Section 1.01 Enactment and Authority This resolution is adopted pursuant to Section 3, Article VII of the State Constitution and in accordance with Chapters 125 and 196, Florida Statutes. Section 1.03 Jurisdiction The area subject to this resolution shall be the total geographical area of Indian River County. Section 1.04 PFmpose and Intent It is the purpose of this resolution to enhance the general welfare of the county citizens by providing incentives for the harmonious, orderly, and progressive development of new businesses and the expansion of existing businesses within the county. The intent of this resolution is to grant tax exemptions to certain types of industrial businesses and corporate offices on a rational, nonarbitrary, nondiscriminatory basis with latitude given to the Board of County Commissioners to grant exemptions in their legislative discretion. Section 1.05 Definition• The following words, phrases, and terms are defined as follows: (1) Economic Development Council - An advisory body of the Board of County Commissioners on issues related to the county's economic development. K (2) Expansion of an Existing Business, as defined by section 196.012(16), F.S. (a) A business establishing 10 or more jobs to employ 10 or more full-time employees in this state, 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; (3) New Business, as defined by Section 196.012(15), F.S. (a) A business establishing 10 or more jobs to employ 10 or more full-time employees in this state, 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 (b) An office space in this state owned and used by a corporation newly domiciled in this state; provided such office space houses 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. section 1.06 Condition■ (1) The economic development ad valorem tax exemption is a local option tax incentive for new or expanding businesses which may be granted or refused at the sole discretion of the Board after consideration of the factors set out in Section 1.07 of this resolution. An applicant for such an exemption must file an application with the county and shall provide any further information requested by the county. (2) Satisfactory proof that the business meets the criteria as established by this resolution for exemption as a new business or expansion of an existing business must accompany the application. (3) An exemption shall be for a 10 year period, unless the Board determines that a shorter exemption is in the best interest of the citizens of Indian River County. (4) Any exemption granted may apply to 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 all tangible personal property of such new business for the first five years of the ten year term, abatement to be reduced 20 percentage points per year for the next five year period, so that in year 10, 100k of the taxes are due and payable; 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 and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business for the first five years of the ten year term, abatement to be reduced 20 percentage points per year for the next five year period, so that in year 10, 100W of the taxes due and payable, 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 granting the tax exemption is adopted. (5) The application shall be filed on or before March 1st of the year in which an exemption is requested. (6) No exemption shall be granted for the land on which new or expanded businesses are to be located. (7) No exemption shall be granted for municipal, school or water management district taxes, or on taxes levied for payment of bonds or taxes authorized by a vote of the electors of the County pursuant to Sections 9(b) or 12, Article VII, of the State Constitution. Section 1.07 Procedure (1) To grant a tax exemption to any business, the Board must adopt an ordinance consistent with the requirements of section 1.08 of this resolution. Before the Board acts on a tax exemption request, however, the application may be presented to the Economic Development Council, which is an advisory body of the Board of County Commissioners, and a recommendation made to the Board. The Community Development Department in coordination with the Property Appraiser shall report to the Economic Development Council and to the Board concerning the fiscal impact of granting exemptions. The Report shall include the following: (a) 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. 4 (b) Any revenue lost to the county for the current fiscal year by virtue of exemptions previously granted under this resolution, or an estimate of such revenue if the actual revenue lost cannot be determined. (c) 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. (d) A determination that the property to be incorporated into a business which meets the definition of a new business or expansion of an existing business as defined in this resolution. (2) When considering the issue of whether or not an applicant is eligible, the Board shall consider the anticipated number of employees, average wage, type of business, environmental impacts, volume of business or production, or any other information relating to the issue of whether the proposed development would significantly improve economic development in Indian River County. Special emphasis shall be given to whether or not the business would be likely to relocate or expand in Indian River County without the tax exemption. Section 1.08 &Mlication Requirements The application shall request the adoption of an ordinance granting the applicant an exemption pursuant to Ch. 196, F.S. The application shall include the following information: (1) The name, property location (address), and tax parcel number(s) of the new business or expansion of an existing business to which the exemption is granted. (2) A description of the improvements to real property for which an exemption is requested and the date of commencement of construction of such improvements. (3) A description of the tangible personal property for which an exemption is requested and the dates when such property was or is to be purchased. (4) Proof, to the satisfaction of the Board of County Commissioners that the applicant is a new business or an expansion of existing business, as defined in section 1.05 of this resolution. Section 1.09 Ordinance Requirement• An ordinance granting an exemption under this section shall be adopted in the same manner as any other ordinance in the county and shall include the following: (1) The name and address of new business or expansion of an existing business to which exemption is granted. (2) 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 economic development ad valorem tax 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. (3) The period of time for which the exemption will remain in effect and the expiration date of the exemption. (4) A finding that the business named in the ordinance meets the definition of a new business or an expansion of an existing business. Section 1.10 gee• Fees charged to offset the cost of processing applications shall be adopted by the Board by resolution. Section 1.11 Revoking of Tax Sxemotion The Board reserves the right to revoke any tax exemption granted under this ordinance, after a public hearing, based on changes to the business from that expected by the application (business no longer meeting the requirement of this resolution), or for misrepresentation or fraud. Section 1.12 Termination Date The Board's authority to grant exemptions will expire on November 5, 2006 but the authority to grant exemptions may be renewed for another 10 year period in a referendum called and held pursuant to Section 196.1995, F.S. 6 All previous ordinances, resolutions, or motions of the Board of County Commissioners of Indian River County, Florida which conflict with the provisions of this resolution are hereby repealed to the extent of such conflict. SECTION 3 ADOPTION AND EFFECTIVE DATE This resolution was adopted by the Board of County Commissioners of Indian River County, Florida, on this 14 day of May, 1996. The resolution was moved for adoption by Commissioner Eggert , seconded by Commissioner Macht and adopted by the following vote: , Chairman Fran B. Adams Aye Vice -Chairman Carolyn K. Eggert Aye — Commissioner John W. Tippin —dye — Commissioner Kenneth R. Macht — ye Commissioner Richard N. Bird Aye BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY BY: �-" [".) . A Fran dame, Ch, airma ATTESTBY: J4Tey K, \c Effective Date: This resolution became effective only upon of tax abatement referendum on 5th day of November, 1996. APPROVED AS TO FORM AND LEGAL SUFFICIENCY Inoa2i , Cp AG:'berd Charles P. Vitunac, County Attorney Aamin� -- ila:e Legal Robert M. Keating, AICP ©uagef — - -- Community Development Director u\d\titnan.ord April 12, 1996 Fish Mgr