By DOTTY NIST
The third county commission vote was the charm for an economic development ad valorem tax exemption for Empire Truck Sales, and Triangle Chevrolet Buick also got a thumbs up for a tax exemption.
The approvals took place at the March 24 Walton County Board of County Commissioners (BCC) regular meeting at the Walton County Courthouse.
In the 2012 General Election, voters had approved a referendum establishing authority for the BCC to grant ad valorem tax exemptions for economic development. The approval provided for the county commission to furnish, based on Florida Statutes, ad valorem tax exemptions to new businesses and businesses which are expanding, at the BCC’s discretion.
Both Empire Truck Sales and Triangle Chevrolet-Buick had applied for tax exemptions in accordance with state statutes and Walton County’s economic development ad valorem tax exemption program.
At the March 24 meeting, south Walton County resident Bill Fletcher addressed the commissioners. He raised objection to both exemption proposals. Fletcher and fellow south Walton County resident Art Miller had made the initial phone call to Love’s Travel Stops that had set the stage for the company to buy land and build the first business at the county-owned Mossy Head Industrial Park. The Mossy Head Love’s Travel stop opened in fall 2014.
Among Fletcher’s contentions was that the proposed tax exemptions “won’t add one job to Walton County.”
“Why would we want to give away tax monies for no reason?” he asked.
Fletcher urged the BCC to “keep these tax dollars to use where we need them,” for roads, infrastructure and other projects.
Representing Triangle Chevrolet-Buick, Greg Lathinghouse presented figures on sales taxes generated by the locally-owned DeFuniak Springs auto dealership, which recently expanded to a much larger facility. Lathinghouse commented that the number of employees for the dealership had been increased from 18 to 23 accompanying the move, and it was possible that more would be hired.
Lathinghouse made the case that businesses getting word that the county was helping in this way would encourage businesses to locate here and expand.
He commented on the up-and-down nature of businesses such as the dealership. He told the commissioners that the proposed tax abatement would definitely be helpful to his company.
District 4 Commissioner Sara Comander said she had known Lathinghouse for a long time and that Triangle had always been committed to DeFuniak Springs and the county. She added that Triangle had always taken care of its employees.
Comander made a motion to move forward with the tax exemption for Triangle Chevrolet-Buick. The motion was approved unanimously.
In order for an economic development ad valorem tax exemption to be implemented, the BCC is required to approve an ordinance setting forth the exemption. The BCC also requires performance agreements to accompany economic development ad valorem tax exemptions. Walton County Attorney Mark Davis said he anticipated having this documentation ready for consideration by the BCC at its April 28 regular meeting.
District 5 Commissioner Cindy Meadows has urged for economic development ad valorem tax exemptions to be used judiciously, including in situations where the county is competing to attract a business. She later commented that the BCC may need to approve such exemptions for locally-owned businesses to encourage expansion.
Two BCC votes had previously been taken on the Empire Truck Sales economic development ad valorem tax exemption. which provides for a five-year, 100-percent tax exemption for this business locating at the Mossy Head Industrial Park.
By a 4-1 vote, there had been a Dec. 9, 2014, BCC decision to grant the exemption. However, when the ordinance to implement the exemption came before the BCC on Jan. 27, it failed in a 2-2 vote.
It was the same ordinance and a performance agreement that were before the BCC on March 24 with the full five-member board in attendance.
Comander started off discussion by expressing respect and appreciation for Fletcher. “I know your heart is in this,” she told him. However she disagreed with his position.
Comander recalled that as a newly-elected commissioner in 2006 she had pledged to bring jobs to this community. While Empire is already coming, she said, perhaps the tax exemption would help them expand. Ad valorem tax exemptions are used every day as an economic development tool in the state, Comander continued. Granting them shows that the county is willing to work with businesses, she reasoned.
Comander expressed her hope that all parcels in Mossy Head Industrial Park would one day be occupied by businesses.
“I still feel very strongly that I support this,” she said of the proposed exemption.
“The key word is incentive,” countered District 5 Commissioner Cindy Meadows. She pointed out that Empire Truck Sales is already locating in Walton County. Meadows maintained that it is not fair to taxpayers to “give away” something that should be used as an incentive.
Meadows referenced a decision the previous day by the Panama City City Council to remove economic development ad valorem tax exemptions. “They’re fraught with perils,” she said of the practice.
“I just think that we’re giving away people’s hard-earned tax dollars,” Meadows concluded.
The ordinance implementing the Empire Truck Sales tax exemption was approved in a 3-2 vote, with Meadows and District 2 Commissioner Cecilia Jones voting against the measure.
A performance agreement for Empire Truck Sales was also approved 3-2, with Meadows and Jones voting no.
These agreements provide for a yearly review of a business’ performance in providing investment and job creation in the community, and the exemption may be terminated if criteria are not met.
