Enterprise Zone changes spur applications

 

Enterprise Zone before recommending changes, the Governor’s Office of Tourism, Trade and Economic Development notified the Enterprise Zone Development Agency and the Glades County Board of County Commissioners that new Enterprise Zone boundaries had been adopted, effective May 1, 2008. Since then, a flurry of new building activity, including construction of the new First Bank branch in Moore Haven, the new Lykes mulch plant in Palmdale, and the new River Forest Yachting Center in Ortona, has been completed.

 

   Glades County Economic Development Council Executive Director and Enterprise Zone Coordinator Tracy Whirls expects to get a raft of new enterprise zone incentives applications in during the first quarter of 2009, associated with that activity. “We just completed our 2008 annual report, with building materials applications having been filed for two residences and new job tax credit applications filed for First Bank and Geo Group,” Ms. Whirls said. “In our reporting, we found that 81 new jobs were created in Glades County in 2008, and based on the first two job creation tax credit applications filed, wages associated with those jobs were in excess of $500,000.

 

   “Once we receive the remainder of the incentives applications from those new companies, we believe the amount of tax incentives companies have been able to recoup thanks to the enterprise zone program will begin to demonstrate that the Glades County Enterprise Zone is a great place to build or expand a business.”

 

    Boundaries of Glades County’s 20 square mile enterprise zone have been drawn to optimize development of potential commercial and industrial sites along US 27 and SR 78 where railroad, water and sewer service is nearby or expected to be developed, Ms. Whirls said.

 

   Among those areas are 194 acres, with rail, owned by Russell Kilpartick that are zoned industrial, industrial and commercial properties owned by Lykes and Duda and others. Glades County's Enterprise Zone, includes the entire city limits of Moore Haven, as well as portions of Palmdale, Muse, Lakeport, SR 80 and areas along US 27, north and south of the city. A map of the new Enterprise Zone boundaries can be viewed on the county’s website www.myglades.com.

 

   The Enterprise Zone designation allows new and expanding businesses to take advantage of special tax incentives for credits against corporate or sales tax for job creation, sales tax refunds for purchases of business machinery and equipment, building materials sales tax refunds and corporate income tax refunds equal to 96 percent of the value of new or improved property. More specifically, new businesses may apply for the Enterprise Zone property tax incentive—a rebate from the state against a company’s corporate income tax, based on the value of the company’s property and the amount of local ad valorem taxes paid on that property. Thus, a $2.5 million building, which would pay roughly $51,807.50 a year in local ad valorem taxes, could claim 96 percent of that (or $49,735) back from the state against their corporate income tax. The credit can be claimed for five years, up to a maximum of $50,000 a year if 20 percent of employees are Enterprise Zone residents; otherwise, they could claim up to $25,000 per year and any unused portion can be carried forward for five years.

 

   A new company would also be eligible for a refund of 97 percent of the sales tax paid on building materials and supplies, up to $10,000 per parcel (if 20 percent of their employees live in an Enterprise Zone), for building materials used for constructing the facility. That includes employees who live in neighboring counties’ Enterprise Zones as well as Glades County’s Enterprise Zone.

Companies are also eligible for an Enterprise Zone business equipment sales tax credit for office equipment and things of that nature, up to $10,000.  This includes sales tax paid on the purchase of any machinery used at the company’s site, such as front end loaders or hoists, excluding only tagged vehicles which may leave the site.

 

   The company may also be eligible for EZ job creation credits, worth up to $8,000 per job, through the qualified target industry tax refund program and a rural job tax credit worth $1,000 per new employee, which can be applied against either Florida corporate or sales tax. The job tax credit against corporate income tax provides a credit of 30 percent of wages paid to new employees who are residents of a Florida Enterprise Zone; and if more than 20 percent of the company’s employees are residents of a Florida Enterprise Zone, or a rural county, the credit is up to 45 percent of wages paid. Alternatively, the company could claim the jobs credit against sales tax, with the same ratio.

 

   “All of the Enterprise Zone incentives taken together mean a substantial savings to new or expanding businesses,” the Enterprise Zone coordinator said.

 

   In addition to the Enterprise Zone incentives, any new business which locates in the Enterprise Zone in Glades County may apply to the Board of County Commissioners for a local option tax abatement for economic development, based upon the number of jobs to be created and the wage scales attached to those jobs.        

 

How to apply

 

   Businesses (and residents) who build or expand properties within the zone can apply for refunds of sales tax on the material used to build the building or home worth up to $10,000 per parcel.

 

    The business owner or home owner brings a copy of their TRIM notice or other document demonstrating ownership of the property and its address, their building permit and certificate of occupancy to the Enterprise Zone coordinator’s office (the Economic Development Council office at 998 Tenth Street) along with receipts for building materials and supplies used in the construction  of the new facility (or residence). Alternatively, the company may ask that the property appraiser determine the value of the property before it was appraised, versus the value of the improved property, and the Enterprise Zone coordinator can use a formula to determine the amount of sales taxes paid. The building material rebate even applies to sales tax paid on installation of mobile home on previously vacant lot in the Enterprise Zone.

 

   The property owner has up to six months from receipt of the certificate of occupancy or by September 1st after the rehabilitated property is first subject to tax assessment to claim the refund.

 

    A similar application process is used to apply for sales tax refunds for purchases of business equipment bring in the receipt or invoice for the purchased equipment, along with ownership documents described above and the enterprise zone coordinator will assist in filling out the relative applications.

 

   To secure the jobs tax credit, the company must create a minimum of five new jobs and must provide documentation of their employees and their addresses and salaries to qualify.

 

   To qualify for the property tax incentive, the company must secure documentation from the property appraiser of the amount of ad valorem taxes paid by April 1 of the first year the company is in operation on the property. Applications for all of the enterprise zone incentives are available in the EDC office, which submits them to the Department of Revenue.

 

   "The Enterprise Zones were created to revitalize communities, either by providing incentives to build new housing or to attract new  industrial and commercial development, " the economic development director said. “It's difficult for new businesses to pay high wages," Ms. Whirls said. "The incentives allow new businesses to pay better wages, which keeps turnover down. So it's a win/win situation for the employee and the business.”

 

For more information on Glades County's Enterprise Zone tax incentives, call Ms. Whirls at 946-0300, or email twhirls@gladescountyedc.com.