Every ten years, according to state law, Palm Beach County is required to ask voters whether to extend a little-known, 30-year-old tax abatement program that helps attract large companies to the area.
This election cycle, the county-wide, property tax incentive question is on the August primary ballot.
It is the third time voters are asked to decide whether the program should continue giving various tax exemptions to qualified new and expanding businesses that provide high-paying, full-time jobs in the county.
But the incentives are only available for a select group of firms and projects.
"The tax exemption program is really for companies that are building a facility, which are typically your corporate headquarters and your manufacturing firms,鈥� said Kelly Smallridge, President of the county鈥檚 Business Development Board.
The board meets with these companies to entice them to stay in Florida over main competitors like North Carolina, South Carolina, Texas and Tennessee.
"We certainly would not offer them if we did not have to, but to create a level playing field, sometimes we have to have programs that tip the scale in our favor and give us the ability to win,鈥�
she added.
If it is not renewed, the program sunsets on Aug. 31, 2024.
READ MORE: Palm Beach County supervisor of elections warns against scams, expects higher in-person voting
The performance-based, property tax incentive program has strict requirements and isn't available to every major company that moves to the county. For one, companies interested in the program are required to build a new facility, not lease existing properties.
The rule encourages the creation of thousands of new jobs, which must pay average salaries of at least $72,000. Capital investment from interested companies are in the millions.
"The higher the salary and the higher the capital investment, the greater the chances are that the county commission will vote in favor of offering some sort of tax exemption,鈥� Smallridge said.
Economic impact from the program
The rule also encourages long-term return on the investment for taxpayers. Industries typically involved in the program include aviation, aerospace, logistics, technology, life science, manufacturing, distribution and financial services.
Between 2013 and 2023, seven companies 鈥� such as Carrier Corporations, Global Center of Excellence, Modernizing Medicine and Pratt Whitney 鈥� used cash incentives and ad valorem tax exemptions to build their businesses in the county, according to data provided to 港澳天下彩by the Business Development Board.
County and state incentives to the companies totaled nearly $36 million. And the five-year economic impact to the county totaled $5.7 billion.
For example, Finfrock, a concrete manufacturing company that built a center in Belle Glade in 2019, invested $36 million which produced a 5-year economic impact of $272 million. The company received $4.6million in tax incentives.
But the incentives are not permanent.
"This tax exemption is only available for a period of no more than 10 years. So after 10 years, we as the county, and as residents, we get the benefit of that company paying the full cost of the taxes whenever their abatement expires,鈥� Smallridge said.
reads: 鈥淪hall the Board of County Commissioners of Palm Beach County 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 Palm Beach County?鈥�
Voters have two options: "Yes - For authority to grant exemptions" and "No - Against authority to grant exemptions."
READ MORE: Primary election day is around the corner. Here is how and where to vote in South Florida
to view a series of Public Service Announcements for Palm Beach County's Supervisor of Elections. And for all voter and election inquiries, visit:
