By DOTTY NIST
In a split decision, the county commission voted to approve a five-year, 100-percent economic development tax exemption for Empire Truck Sales.
The decision on the tax exemption was made at the Dec. 9 Walton County Board of County Commissioners (BCC) meeting at the South Walton Annex.
A contract had been approved in June providing for Empire to purchase 10 acres at the county-owned Mossy Head Industrial Park on which to locate a truck sales business. In September, the county had been presented with a request from Empire requesting the tax exemption.
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.
Following the exemption request by Empire Truck Sales and a request for a renewal of a previously-approved exemption for Professional Products, in November the BCC approved a set of criteria for review and evaluation of applications for economic development ad valorem tax exemptions. Utilized in connection with the criteria were the amount of capital investment to take place and wages associated with new jobs to be provided.
At the Dec. 9 BCC meeting, Walton County Administrator Larry Jones reported that, based upon the evaluation formula previously approved by the BCC, Empire Truck Sales would qualify for a 100-percent tax exemption for up to a 10-year period, with annual reviews of the exemption to take place. The reviews would be to determine whether the business was complying with the investment and job creation that had been part of the terms of approval for the exemption.
District 4 Commissioner Sara Comander moved for approval of the 100-percent exemption for a five-year period with annual reviews, after which the BCC could vote on whether to renew the exemption for another five years.
“I see the jobs that they’re going to create,” Comander said.
According to a submittal by Empire, the company would initially hire 34 people and gradually increase the number of employees on their payroll, hiring an additional 20 people by 2022.
Comander also noted the impact of the paychecks on the community as people move into the area and the wages are spent in the community. “I think it’s a win for Walton County,” she said.
District 5 Commissioner Cindy Meadows expressed concern. She discussed that, although the tax exemption being considered might “seem small,” that as other businesses “got in line” for exemptions, the impact on the tax base would increase.
She brought up the possibility of events such as hurricanes, oil spills, and recessions occurring within a few years after businesses were granted tax exemptions. With the resulting likelihood of plummeting value of beach property, which, she noted, yields 90 percent of the county’s ad valorem taxes, the county could find itself in a “precarious position,” with a budget that could not be funded.
Walton County Attorney Mark Davis commented that the BCC had the ability to grant tax exemptions year by year.
Jones interjected that language could be added to contracts for tax exemptions providing for them to be discontinued in instances of the catastrophic events.
Meadows said she thought that when voters had approved the measure for the county to grant tax exemptions, most had voted for it as an incentive bill to bring in large businesses, not as a way to give businesses meeting certain criteria a 100-percent tax exemption. She thought a 100-percent exemption to be too large.
Meadows went on to say that everyone who is renting is creating jobs.
County Commission Chairman Bill Imfeld pointed out that businesses’ plans for investment within the county also enter into the criteria for exemptions.
In response to Meadows’ input, Comander amended her motion to provide for exemptions to be discontinued in instances of catastrophic events.
Meadows also suggested an amendment to the motion to reduce the amount of tax exemption to 50 percent and to grant it for three rather than five years. However, these changes were not made.
Imfeld strictly limited citizen comment on the proposal to whether Empire’s request complied with the policy/criteria that the BCC had previously adopted for granting tax exemptions. This did not sit well with some citizens who had wanted to speak on the matter in a less specific way.
BCC rules allow for citizen comment of five minutes or less.
South Walton County resident Bill Fletcher said he agreed with Meadows’ position. He began to speak about the price that the Mossy Head Industrial Park’s first tenant, Love’s Travel Stops, had paid for property. However, upon hearing from Imfeld that comments must be confined to the topic of the specific request, Fletcher stopped talking and sat down.
Meadows disagreed with the limit on discussion, saying that citizens should be able to “speak their mind.”
It was noted that the public could speak on any topic during the public comment period later in the meeting. However, this would have been after a vote was taken on the proposed exemption.
Suzanne Harris of Edgewater Beach Condominium asked whether, if Edgewater hired 35 maids, they would qualify for a tax exemption. Imfeld reminded her that it was Empire’s request that was under discussion.
Harris asked for Comander’s motion to be amended to allow the public to speak before a vote was taken. There was no response to this request.
Miramar Beach resident Don Riley asked if the constraint being imposed on public comment would not require a vote of the BCC.
A vote was taken on the motion, and it was approved 4-1, with Meadows dissenting. The approval was subject to a contract for the Empire exemption being drawn up by staff and brought before the BCC for approval.
