Hendry County Economic Development Council

Economic Development Ad Valorem Tax Exemption

Do You Qualify?

Ad valorem tax exemptions apply to new businesses relocating to Hendry County and to expansions of business already situated in Hendry County
New or expanded businesses must make a positive contribution to the economy of Hendry County in terms of new jobs and improvements to real and personal property.
Incentives are applicable to business of diverse industries, with the exception of retail operations.
Any and all exemptions granted must result in a positive economic impact on Hendry County and its existing businesses.
The applicant must be a person, firm, partnership, or corporation, or other business organizations or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect.
Expansion of an Existing Business - An expansion of an existing business means:
1. 1. A business establishing ten (10) or more jobs to employ ten (10 or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items or tangible personal property at a fixed location and which comprises as industrial, manufacturing, or processing plant;
  2. Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this state, whose sales factor of which is defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests and economic development as valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operations on a site collected with a commercial or industrial operation owned by the same businesses, resulting in a net increase in employment of not less than 10 percent or an increase in productive output of not less than 10 percent.
  3. Any business located in an enterprise zone that increases operations on a site collocated with a commercial or industrial operation owned by the same business; or
2. Any expansion of an existing business must increase operations on a site collocated with a commercial or industrial operation owned by the same business resulting in a net increase in employment of not less that ten (10%) percent of the said collocated site or an increase in productive output of not less than ten (10%) percent of the said collocated site. The ten (1-%) percent requirement does not apply to enterprise zones.
Improvements - Physical changes made to raw land, and structures placed on or under the land surface.
New Business - A new business means:
1. A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant.
2. Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this state, whose sales factor of which is defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests and economic development as valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operations on a site collected with a commercial or industrial operation owned by the same businesses, resulting in a net increase in employment of not less than 10 percent or an increase in productive output of not less than 10 percent.
3. An office space in this state owned and used by a corporation newly domiciled in this state, provided such office space houses fifty (50) or more full- time employees of such corporation' provided that such busses or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business.
4. Any business located in an enterprise zone that first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business.
Sales Factor - As defined in Section 220.15(5), Florida Statutes, the sales factor is a fraction - the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period.
The exemptions shall not accrue to improvements to real property made by or for the use of new or expanding businesses when such improvements have been assessed and included on the tax rolls of the calendar year preceding the effective date of the ordinance specifically granting a business an exemption.
Any exemption granted may apply up to one hundred (100%) percent of the assessed value of all improvements to real property made by or for the sue of a new business and of all tangible personal property of such new business, or up to one hundred (100%) percent of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the value of such improvements to real property or tangible personal property has not bee assessed and included on the tax rolls of the calendar year preceding the effective date of the ordinance specifically granting a business an exemption. Property acquired to replace existing property shall into be considered to facilitate a business expansion.
No exemption shall be granted for the land upon which new or expanded businesses are to be located.
No exe, exemption shall be granted to any existing building or an addition to an existing building unless such building or addition was substantially completed within the 12-month period preceding the date of application
the exemption may be for a period up to ten (10) years from the date the Board adopts the ordinance granting the exemption
The exemption applies only to taxes levied by Hendry County. The exemption does not apply to taxes levied by a municipality, school district, or water management district, or to taxes levied for the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9 and Section 12, Article VII of the State Constitution.
The ability to receive an exemption for the period granted is conditioned upon the applicant's ability to maintain the new business or the expansion of an existing business throughout the entire period. The Applicant shall be required to submit a report on an annual basis by March 1st of each year the board evidencing satisfaction of this condition. In addition, any business granted an exemption shall furnish to the Board or its designee, such information, report and the Board or is designee may reasonably deem necessary for the purpose of determining continued performance by the business of the conditions stated in the Ordinance and the representatives made in the application process.