Hillsborough eyes cutting taxes for relocating, new companies

Businesses that choose to locate or expand in Hillsborough County could get a 50 percent reduction in their property taxes under a plan given preliminary approval by county commissioners Wednesday.

The package unveiled at the commission meeting was the public's first look at details that flesh out an economic development referendum approved by voters Nov. 2. The ballot measure gave the commission authority to give tax breaks to lure industry, but wasn't specific.

Under the plan, a 50 percent reduction in county property taxes would be given for five, seven or 10 years, depending on the number and type of jobs created in the business expansion or relocation. The jobs would have to pay more than the area average wage, and the tax breaks would end if the company's hiring falls short.

Gene Gray, the county's economic development director, said the plan is designed to be generous enough to attract new industries, but not so large that the county derives no benefit in increased tax revenues.

"All incentive programs we have in the state have the same principle: that we should benefit from a project that comes here," Gray said. "Fifty percent of those property taxes being generated we feel is a reasonable amount ..."

Though commissioners were generally happy with the package, several changes were suggested.

Commissioners Ken Hagan and Les Miller questioned whether 50 percent was a large enough incentive when the county's unemployment rate is more than 11 percent. Miller, who represents some of the poorest neighborhoods in the county, said jobs, not tax collections, should be the highest priority.

Gray said the tax incentives would increase to 75 percent for businesses that locate or expand in an enterprise zone, where officials are trying to alleviate high poverty, or in brownfields where environmental contamination is a problem.

He also said the commission could enhance incentives in special cases, such as for an unusually large industry that creates a lot of jobs.

But the plan does not address community redevelopment areas, where a portion of the property taxes are collected and used for redevelopment in blighted neighborhoods.

Gray said all the CRAs in the county are located in the cities of Tampa, Plant City and Temple Terrace; none are in the county where the property tax exemptions would apply

Commissioner Kevin Beckner asked Gray to talk to officials in the three cities to see how the exemptions can be extended to the redevelopment areas, which often have large minority populations.

"I'm really concerned about how to create jobs and help minority businesses," Beckner said after the meeting. "I don't think this plan scratches the surface."