§ 15-66. Local property tax grant incentives.

(a)

Real property tax grant. A qualified company shall receive a grant from the Tazewell County Industrial Development Authority (IDA) equal to twenty-five (25) percent of the increase in local real property tax paid by the qualified company by reason of an increase in tax liability resulting from the qualified improvements made to real property located in the enterprise zone and owned by the qualified company. The qualified company shall be entitled to the grant for three (3) separate tax years. Property leased to the qualified company for a period of at least five (5) years shall be deemed owned by the qualified company for purposes of this ordinance.

(b)

Tangible personal property grant ("TPPG"). A qualified company shall receive a tangible personal property grant, hereinafter referred to as "TPPG", from the Tazewell County Industrial Development Authority (IDA) equal to twenty-five (25) percent of the increase in local machinery and tool tax and business personal property tax liability assessed on their qualifying investment in machinery and tools and business personal property. The qualified company shall be entitled to the grant for three (3) separate tax years. The value of the qualifying investment shall be the amount reflected on the company's machine and tools personal property tax return filed with the Tazewell County Commissioner of Revenue's Office.

(c)

Property tax grant enhancements.

(1)

The amount of either or both property tax grants may be enhanced to fifty (50) percent of the above defined tax liability increase if any one of the following circumstances exists:

a.

The qualifying company's qualifying investment or improvement is being undertaken for the qualifying company to diversify its product or customer base, as determined at the sole discretion of the IDA. Diversification shall mean at least fifty (50) percent of the qualifying investment or improvement expands the company's capacity to produce a product for an industry sector which constitutes less than twenty-five (25) percent of the company's current customer base or to serve customers in an industry sector which constitutes less than twenty-five (25) percent of company's current customer base.

b.

The qualifying company is a technology-driven company, as determined at the sole discretion of the IDA. A Technology-driven company develops advanced technology or employs advanced technology integral to the production process, whether of information or physical goods. Technology-driven companies include, but are not limited to companies in: advanced manufacturing, agro-tech, clean energy and clean energy equipment research and production, computer and computer device manufacturing, data centers, information processing, information technology, medical device manufacturing, research and development, pharmaceutical manufacturing, scientific instrument manufacturing, software development and telemarketing/teleservice centers. Technology-driven companies do not include companies using computers or office or medical equipment in the normal course of business or companies distributing, retailing, installing or servicing technology equipment, unless a majority of customers are national or international.

c.

The qualifying company is a tourism support company, as determined at the sole discretion of the IDA. Tourism support companies are businesses whose primary customers are tourists and include, but are not limited to, hotels, bed and breakfasts, timeshares, gift shops, arts and crafts stores, antique dealers, galleries, outdoor recreation retailers, outdoor recreation service providers, museums, tourist attractions, and restaurants offering unique fare.

(2)

The IDA, at their sole discretion and without regard for past grant awards, may augment the amount and/or duration of either or both property tax grants and may also adjust the qualification criteria for such augmented feature. The IDA may also, at their sole discretion and without regard for past grant awards, waive any property tax grant qualification requirement or any portion, thereof. However, the IDA may not add any qualification requirements not set forth in this ordinance. Nor may the IDA diminish any grant for which a company qualifies.

(d)

Other property tax grant augmentations and requirements.

(1)

If a qualifying company fails to meet any qualification requirement during the grant period, the grant period may be extended by the IDA up to two (2) years and the qualifying company may receive either or both property tax grants in any subsequent year for which it meets the qualification requirements. However, the extension of the grant term shall not increase the amount of the grant: the qualifying company may not receive more than three (3) tax years worth of grant proceeds.

(2)

A qualifying company may not receive a real property tax grant if the company or the owner of the subject property is receiving or has applied for a rehabilitated real estate tax exemption (RRETE).

(3)

The value of the qualifying investment or qualifying improvements for the property tax grants, initially established hereby as twenty-five thousand dollars ($25,000.00) each, shall increase by three (3) percent each year beginning January 1, 2017. Such qualifying improvement or qualifying investment threshold during the first ten (10) years after the effective date of this ordinance shall be as shown on the attached chart which hereby is incorporated by reference.

(4)

If the qualified company does not apply for the real property tax grant within twelve (12) months of completing the qualifying improvement the zone administrator may not award the real property tax grant to the company.

(5)

If the total amount of the TPPG is estimated to exceed fifty thousand dollars ($50,000.00), the qualifying company cannot receive more than fifty thousand dollars ($50,000.00) in grant proceeds unless the company also signs a performance agreement with the IDA, whereby the qualifying company agrees to return all or a portion of the amount of TPPG proceeds if the machinery or tools constituting the qualifying tangible personal property investment are removed from the VEZ within five (5) years after the company receives its final TPPG proceeds payment. Said performance agreement shall only require that the amount to be repaid would be pro-rated for the number of years after the final TPPG payment that the qualifying investment remained in the VEZ, such that the total amount to be repaid is diminished by twenty (20) percent for each tax year in which such machinery and tools were taxed by the county.

(e)

Property tax grant distributions. A qualified company receiving either the real property tax grant or personal property tax grant may receive such grant for any three (3) tax years, during the five (5) tax years immediately following a determination of eligibility. The qualified company may select which three (3) of the five (5) possible tax years for which the qualified company desires to receive the grant; the three (3) years so selected need not be consecutive. The qualified Company must apply for a grant distribution on or before April 15 of the year following the tax year for which the Company desires the grant distribution.

(Ord. of 1-5-16)

(Ord. of 1-5-16)