County Seeks Tax Credits For New Jobs
Written by Lou Ortiz on October 25, 2012
By Lou Ortiz
Miami-Dade is campaigning for a new state law to allow corporate tax credits of $1,500 for each new job created.
The Urban Job Creation Investment Act would allow creation of economic development zones, according to a resolution the county commission passed Tuesday.
"Under the act, businesses located in designated zones could apply for certification to receive certain benefits, including 50% reduction in the amount of state sales tax imposed," says the resolution sponsored by Commissioner Rebeca Sosa.
"The act also would authorize the creation of funds within each designated zone made up of sales taxes collected within each program zone that would be used to finance redevelopment projects in the zone," the resolution says.
The commission is supporting the Beacon Council, the county’s public-private economic development organization, in urging the Legislature to pass the act or similar legislation. The commission also wants the county’s state lobbyists to advocate for passage of the legislation.
According to county documents, the act would create:
nA one-time $1,500 corporate tax credit for each new full-time employee hired who lives in a program zone and had been unemployed at least 90 days or was getting public assistance.
nA 50% tax credit against sales tax paid by certified businesses within the zone on the purchase of depreciable items.
nSubsidized unemployment insurance costs for employees who earn less than $4,500 per quarter as determined by the area’s local development corporation.
nA tax credit against the corporate business tax of 8%.
"The act would establish a sales tax revenue floor for each program zone, reflecting current sales tax revenue that is generated in the program zone, and addressing any negative fiscal impact the act could have on state revenue," according to county documents.
Sales tax revenue in excess of the floor in each program zone would go into a fund for economic development and each zone could apply for more funds for other projects and improvements within the zone, the documents say.
Republican State Sen. Rene Garcia of Hialeah proposed a bill to create the act during this year’s legislative session, but the bill died in March in the Senate Commerce & Tourism Committee.
"The Beacon Council is pursuing passage of the Urban Job Creation Investment Act during the 2013 session of the Florida Legislature in an effort to encourage economic development," the commission’s resolution says, "and [the commission] would like to support the Beacon Council in its efforts."To read the entire issue of Miami Today online, subscribe to e -Miami Today, an exact digital replica of the printed edition.