City of Tarpon Springs
Copyright © 2015 City of Tarpon Springs. All rights registered.

Local Referendum on March 12, 2019 Ballot

LOCAL CITY REFERENDUM 1

ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS FOR NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES Shall the Board of Commissioners of the City of Tarpon Springs, Florida, be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses that are expected to create new, full-time jobs in the City? _______ Yes – For authority to grant exemptions _______ No – Against authority to grant exemptions

Frequently Asked Questions

What is the ad valorem tax exemption for economic development? It is an economic incentive designed to assist existing local businesses with expansion and create new job opportunities. It will also encourage new businesses to choose Tarpon Springs. The program authorizes the Board of Commissioners to review and grant qualifying businesses a temporary City property tax abatement for up to 10 years on new equipment and improvements to facilities. Why would the City want to have this program in its tool box? The economic development ad valorem tax exemption program is designed to help existing businesses expand and encourage industries that offer higher-than-average salaries to locate here. The program enables Tarpon Springs to more effectively stimulate job creation. At least 38 counties and 20 cities in Florida also have this incentive, and it allows us to better compete for relocation projects. Will the program create more competition for existing businesses? The program is targeted at companies that have the majority of their customers outside of the City, not at firms that would be competing for business in the local market. What are the advantages for existing local businesses? This incentive can help existing businesses to expand, purchase new equipment and create new jobs. What taxes are eligible for exemption? City of Tarpon Springs property taxes on qualifying buildings and equipment are eligible. Will school taxes be affected? No. The exemption only applies to the city ad valorem tax levied. It does not apply to school taxes or the taxes of any other entity. Will the City’s services be affected? There are no anticipated impacts to the City’s existing services as a result of the program. In fact, the long-term expectation is that the economic impact to the City from increased investment will actually increase revenues at the end of the abatement period. Current tax levels on the incentivized properties will be unaffected. Only the taxes on improvements to buildings and the value of new equipment are eligible for abatement. Are companies that apply automatically granted an exemption? No. Companies must first meet threshold criteria required by state law. If all criteria are met, an application will be considered by the Tarpon Springs Board of Commissioners at a public hearing where public input is taken. The board will have discretion to grant or deny exemption applications and to determine the percentage and duration of the exemption. Each exemption is granted on a case by case basis. Are existing buildings and equipment eligible for exemption? No. Only new buildings, expansions of existing buildings and new equipment purchased by a qualifying business are eligible. Land is not eligible. Equipment purchased to replace existing equipment is not eligible.

Resolution 2018-30

Presentation to City Commissioners

Overview of Florida Statutory Requirements - Economic Development Ad Valorem Tax Exemption S.196.1995, F S

Any county or city may grant exemptions for up to 10 years to ad valorem taxes imposed on new business and expansions to existing businesses for economic development purposes. The exemption may be granted for up to 100 percent of the assessed value of eligible improvements to real and tangible property for qualifying businesses (existing tax base is not affected). The exemption applies only to taxes levied by the respective unit of government granting the exemption (in our case, city millage only). The exemption does not apply to taxes levied for the payment of bonds or to special taxing districts. The authority to grant exemptions must be approved by referendum of the subject municipality or county. The referendum language is virtually prescribed in the Statutes. The locality's authority to grant the exemption expires after ten years, but may be renewed for additional ten year periods upon further referendum approvals. The statute defines eligible business types and requires mm1mum new job creation requirements, as follows: manufacturing or Qualified Target Industry (10 new jobs); business with greater than 50% of sales revenues from out-of-state customers (25); and office (50). The average wage for such new manufacturing or Qualified Target Industry jobs must be above the average wage in the area. The limitations on business types and/or minimum job creation requirements may be waived for businesses located within an enterprise zone or brownfield area. Eligible companies must make formal written application for the exemption. Individual exemption requests may be approved by ordinance of the local government (or denied) on a case-by-case basis. Upon approval of an application for a tax exemption, the Board of Commissioners (BOC) and the applicant may enter into a written tax exemption agreement, which may include performance criteria. Any such agreement must require a status report on the actual number of new, full-time jobs created and their actual average wage. The agreement may provide the BOC with the authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Working within the above parameters, there is flexibility to target the exemption program at the local level to align with local economic development objectives.  Program details are defined in an enacting ordinance after referendum approval.
City of Tarpon Springs
Copyright © 2015 City of Tarpon Springs. All rights registered

Local Referendum on

March 12, 2019 Ballot

LOCAL CITY REFERENDUM 1

ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS FOR NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES Shall the Board of Commissioners of the City of Tarpon Springs, Florida, be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses that are expected to create new, full-time jobs in the City? _______ Yes – For authority to grant exemptions _______ No – Against authority to grant exemptions

Frequently Asked Questions

What is the ad valorem tax exemption for economic development? It is an economic incentive designed to assist existing local businesses with expansion and create new job opportunities. It will also encourage new businesses to choose Tarpon Springs. The program authorizes the Board of Commissioners to review and grant qualifying businesses a temporary City property tax abatement for up to 10 years on new equipment and improvements to facilities. Why would the City want to have this program in its tool box? The economic development ad valorem tax exemption program is designed to help existing businesses expand and encourage industries that offer higher-than-average salaries to locate here. The program enables Tarpon Springs to more effectively stimulate job creation. At least 38 counties and 20 cities in Florida also have this incentive, and it allows us to better compete for relocation projects. Will the program create more competition for existing businesses? The program is targeted at companies that have the majority of their customers outside of the City, not at firms that would be competing for business in the local market. What are the advantages for existing local businesses? This incentive can help existing businesses to expand, purchase new equipment and create new jobs. What taxes are eligible for exemption? City of Tarpon Springs property taxes on qualifying buildings and equipment are eligible. Will school taxes be affected? No. The exemption only applies to the city ad valorem tax levied. It does not apply to school taxes or the taxes of any other entity. Will the City’s services be affected? There are no anticipated impacts to the City’s existing services as a result of the program. In fact, the long-term expectation is that the economic impact to the City from increased investment will actually increase revenues at the end of the abatement period. Current tax levels on the incentivized properties will be unaffected. Only the taxes on improvements to buildings and the value of new equipment are eligible for abatement. Are companies that apply automatically granted an exemption? No. Companies must first meet threshold criteria required by state law. If all criteria are met, an application will be considered by the Tarpon Springs Board of Commissioners at a public hearing where public input is taken. The board will have discretion to grant or deny exemption applications and to determine the percentage and duration of the exemption. Each exemption is granted on a case by case basis. Are existing buildings and equipment eligible for exemption? No. Only new buildings, expansions of existing buildings and new equipment purchased by a qualifying business are eligible. Land is not eligible. Equipment purchased to replace existing equipment is not eligible.

Resolution 2018-30

Presentation to City Commissioners

Overview of Florida Statutory

Requirements - Economic Development

Ad Valorem Tax Exemption S.196.1995,

F S

Any county or city may grant exemptions for up to 10 years to ad valorem taxes imposed on new business and expansions to existing businesses for economic development purposes. The exemption may be granted for up to 100 percent of the assessed value of eligible improvements to real and tangible property for qualifying businesses (existing tax base is not affected). The exemption applies only to taxes levied by the respective unit of government granting the exemption (in our case, city millage only). The exemption does not apply to taxes levied for the payment of bonds or to special taxing districts. The authority to grant exemptions must be approved by referendum of the subject municipality or county. The referendum language is virtually prescribed in the Statutes. The locality's authority to grant the exemption expires after ten years, but may be renewed for additional ten year periods upon further referendum approvals. The statute defines eligible business types and requires mm1mum new job creation requirements, as follows: manufacturing or Qualified Target Industry (10 new jobs); business with greater than 50% of sales revenues from out-of-state customers (25); and office (50). The average wage for such new manufacturing or Qualified Target Industry jobs must be above the average wage in the area. The limitations on business types and/or minimum job creation requirements may be waived for businesses located within an enterprise zone or brownfield area. Eligible companies must make formal written application for the exemption. Individual exemption requests may be approved by ordinance of the local government (or denied) on a case-by-case basis. Upon approval of an application for a tax exemption, the Board of Commissioners (BOC) and the applicant may enter into a written tax exemption agreement, which may include performance criteria. Any such agreement must require a status report on the actual number of new, full-time jobs created and their actual average wage. The agreement may provide the BOC with the authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Working within the above parameters, there is flexibility to target the exemption program at the local level to align with local economic development objectives.  Program details are defined in an enacting ordinance after referendum approval.
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