Economic Development Ad Valorem Tax Exemption Ordinance

1. Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners February 21, 2012

2. Economic Development Tax Exemption Presentation Overview • Background • Implementing Ordinance • Requested Action

3. Background • Exemption authorized under Fla. Constitution • Section 196.1995 Fla. Stat. after voter approval • December 6th - worksession • January 31, 2012 – referendum approved • February 7th - update

4. Implementing Ordinance Implementing Ordinance Overview • Eligible Businesses • Eligible Property • Applicable Taxes • Application Process • Exemption Ordinance • Contract – Annual Reporting

5. Eligible New Businesses 10 Jobs: or more new full-time jobs with average wages higher than area average in manufacturing or “target industry business” 25 Jobs: Creating 25 or more new full-time jobs with more than 50% sales outside of Florida; or 50 Jobs: Office space established by a newly domiciled business housing 50 or more full-time employees separate from any other operation; or Enterprise/ Brownfield: Any business in Enterprise zone or Brownfield area that first begins operation on site separate from other commercial or industrial operation owned by the same business

6. Eligible Expansions of Existing Business 10 jobs: or more new full-time jobs with wages higher than area average in manufacturing or “Target industry business” 25 Jobs: or more new full time jobs with more than 50% sales outside of Fla. and net increase in employment/output/sales of at least 10%; or Enterprise/ Brownfield: increases operations on site located within the same zone co-located with a commercial or industrial operation owned by the same business

7. Eligible Property • Added Improvements to Real Property not already on tax roll • Tangible Personal Property not already on tax roll • Land not eligible

8. Applicable Taxes Exemption applies to: • Ad valorem taxes levied countywide – (4.4347 mills) But not: • MSTU millage • City, school, or special district millage • property taxes authorized by referendum Maximum total forgone revenues of $2,000,000 • or higher amount approved by supermajority

9. APPLICATION PROCESS • Office of Economic Development • Property Appraiser • Application Fee may be set by resolution • Input from any affected CRA • Additional information may be required • Exemption decision at sole & absolute discretion of the Board – no entitlement to exemption • Decision not appealable to VAB

10. APPLICATION PROCESS Statutory Factors for consideration: • Net number of new jobs • Average wage of new jobs • Capital investment to be made by applicant • Type of business – target industry? • Environmental impact • Extent applicant intends to source supplies & materials within county • Economic related characteristics deemed necessary by county Recommended Guidelines in future admin. reg.

11. Exemption Ordinance • Public Hearing • Grant of Exemption conditioned upon signing contract • Annual reporting required • Monitoring: • Florida new hire form • UCT-6 • IRS Form 941

12. Requested Action • Approval of an ordinance amending Chapter 25 of the Orange County Code to establish an exemption from certain ad valorem taxation for certain new businesses and expansions of existing businesses.

13. Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners February 21, 2012