§ 2-11.1. Economic development ad valorem tax exemption regulations.  


Latest version.
  • Section 196.1995, Florida Statutes, as amended from time to time, provides the requirements for economic development ad valorem tax exemption. It is the intent of the city to provide regulations to implement to tax exemption within the City of Coral Springs, Florida.

    (A)

    Definitions. As used in this section, the terms listed below shall be defined as follows:

    A corporation newly domiciled in Florida means a corporation created under Florida law that, by law, considers Florida as the center of its corporate affairs and the place where its functions are discharged, and that has been incorporated in Florida for a period of not more than twelve (12) months preceding the initial date of application for exemption hereunder. The domicile of a corporation is in the state under whose laws the corporation is created, regardless of where it may do business.

    Applicant means any person, partnership or corporation submitting an economic development ad valorem tax exemption application to the city commission.

    Business means any activity engaged in by any person, partnership, corporation or firm with the object of private or public gain, benefit, or advantage, either direct or indirect. A business is further and more specifically defined as follows:

    (1)

    New business:

    (a)

    A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this city, 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;

    (b)

    A business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this city; the sales factor of which, as defined by Section 220.15(5), Florida Statutes, as amended from time to time, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or

    (c)

    An office space in this city owned and used by a corporation newly domiciled in this city; provided such office space houses fifty (50) or more full-time employees of such corporation;

    provided that such business or office referred to in subsections (a), (b), or (c), above, first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business, as defined in Section 196.012(15), Florida Statutes, as amended from time to time.

    (2)

    Expansion of an existing business:

    (a)

    A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in the city, 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)

    Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in the city; the sales factor of which, as defined by Section 220.15(5), Florida Statutes, as amended from time to time, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed;

    provided that such business increases operations on a site co-located 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, as defined in Section 196.012(16), Florida Statutes, as amended from time to time.

    (3)

    Eligible business:

    (a)

    A business that meets the statutory criteria set forth above for a new business or an expansion of an existing business, as the case may be; and

    (b)

    A new business or an expansion of an existing business that meets the criteria set forth in the economic development ad valorem tax exemption guidelines.

    Department means the Florida Department of Revenue.

    Economic development ad valorem tax exemption guidelines means certain minimum thresholds for eligibility hereunder pursuant to the economic development strategy of the economic development element of the Coral Springs Comprehensive Plan. The city commission shall utilize these guidelines to assist in determining whether to grant an economic development ad valorem tax exemption to an applicant. (These guidelines, incorporated by reference as Exhibit "A," shall be made available to the public by the community development department.)

    Improvements means physical changes made to raw land, and to structures placed on or under the land surface.

    Sales factor means a fraction of the numerator which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. (See Section 220.15(5), Florida Statutes, as amended from time to time, for specifics of computation.)

    (B)

    General.

    (1)

    Upon the application of an eligible business, the city commission may grant, at its sole discretion, an economic development ad valorem tax exemption to the eligible business. It is the intent of the city commission to limit this exemption to businesses that qualify within the economic development ad valorem tax exemption guidelines; provided, however, that the city commission reserves the right to grant such tax exemption to a business that meets the statutory definition of a new business or an expansion of an existing business but is not otherwise eligible hereunder.

    (2)

    An exemption granted hereunder shall be based on one hundred (100) percent of the assessed value of all improvements to real property for use of a new business and all tangible personal property of the new business, or based upon one hundred (100) percent of added improvements to real property for the expansion of an existing business and the net increase in all tangible personal property acquired for the expansion of an existing business.

    (3)

    The tax exemption described herein shall not apply to improvements to real property made by or for the use of new or expanding existing businesses when such improvements have been included on the Broward County tax rolls prior to the referendum authorizing this ordinance.

    (4)

    Any tax exemption granted hereunder by the city shall be for a period of at least one (1) year and shall not exceed a term of ten (10) years from the date of the adoption of the ordinance granting the exemption to the applicant.

    (C)

    Procedure.

    (1)

    Submission of application.

    (a)

    A business meeting the requirements set forth herein must file an application (Florida Department of Revenue Form DR-418, as amended from time to time) with the city. Said application shall be filed with the department of community development. The application must include the following information:

    1.

    The name and location (address) of the new business or the expansion of the existing business;

    2.

    A description of the improvements to the real property for which the exemption is requested and the date the construction of said improvements will commence;

    3.

    A description of the tangible personal property for which the exemption is requested and the dates when said property was or is to be purchased;

    4.

    Proof, to the satisfaction of the governing body, that the applicant is a new business or an expansion of an existing business, as defined in § 196.012(15) or (16), Florida Statutes; and

    5.

    Other information deemed necessary by the Department of Revenue.

    The city may require additional information on forms provided by the department of community development.

    (b)

    The application must request the adoption of an ordinance granting the applicant the exemption.

    (c)

    Fees. There shall be no fee charged by the city to process this application or an exemption ordinance required pursuant to this section.

    (2)

    Property appraiser review. Before the city commission acts on an application the city must submit the application to the Broward County Property Appraiser for review. Upon request, the department of revenue, pursuant to state statute, will provide the property appraiser such information as it may have available to assist in making this determination. After careful consideration, the property appraiser, pursuant to state statute, shall report to the city commission concerning the fiscal impact of granting exemptions.

    The property appraiser's report shall include the following:

    (a)

    The total revenue available to the city for the current fiscal year from ad valorem tax revenue, or an estimate of the revenue if the actual revenue available cannot be determined;

    (b)

    The amount of revenue lost to the city for the current fiscal year as a result of previous economic development ad valorem tax exemptions granted, or an estimate of the actual revenue lost cannot be determined;

    (c)

    An estimate of the amount of revenue which would be lost during the current fiscal year if the exemption were granted had the property been subject to taxation;

    (d)

    A determination as to whether the business meets the definition of a new or expanding business as defined herein and in Section 196.012(15) and (16), Florida Statutes.

    (3)

    City commission review. The city commission shall undertake consideration of the property appraiser's report and determine whether the information contained in it presents a basis for denying an applicant's economic development ad valorem tax exemption. If not, then the city commission, at its discretion, may grant such tax exemption pursuant to the economic development ad valorem tax exemption guidelines.

    Upon the city commission's determination that an applicant may obtain a tax exemption hereunder, the city commission shall adopt an ordinance granting the exemption. The ordinance shall include the following information:

    (a)

    The name and address of the new or expanding business.

    (b)

    The total amount of revenue available from ad valorem tax sources for the current fiscal year; the total amount of revenue lost for the current fiscal year because of the economic development ad valorem tax exemptions currently in effect, and the amount of estimated revenue which would be lost to the city for the current fiscal year attributable to the exemption to the new or expanding business.

    (c)

    The period of time for which the exemption shall remain in effect and the expiration date of the exemption.

    (d)

    A finding that the business meets the definition of a new business or an expansion of an existing business, as defined herein.

    (D)

    Ineligible business.

    (1)

    A business that is determined by the city commission to have a detrimental impact on the environmental quality of the city, including a business that contributes air, water or noise pollution, is ineligible to receive an economic development ad valorem tax exemption.

    (2)

    A business that is determined by the city commission to be noxious or offensive to the general public and that may be or become a nuisance or jeopardize the health or safety of the citizens of the city is ineligible to receive an economic development ad valorem tax exemption.

    (E)

    Appeal. The decision of the city commission not to grant an economic development ad valorem tax exemption to a particular business or industry is subject only to judicial review in a court of competent jurisdiction.

(Ord. No. 93-103, § 1, 3-2-93; Ord. No. 94-126, § 1, 5-17-94)