Northampton County sends new enterprise zone incentives to public hearing

In an effort to enhance the County’s business community and fill what County Administrator referred to as “stubbornly vacant” store fronts, the Board of Supervisors took action at Tuesday night’s Board meeting on the Enterprise Zone program.

The program has been in place for years, but according to Charlie Kolakowski, it really had no significant financial impact to business owners unless they were renovating an old building. He suggested the following changes to the program:

• Grant for five years for Machinery and tools tax of 50% of the increase in tax paid. Requires a minimum of $50,000 in investment.
• Grant for five years for Business Personal Property tax of 50% of the increase in tax paid. Requires a minimum of $50,000 in investment.
• Grant for five years for Real Estate tax for 50% of the increased valuation for new business construction or rehabilitation, which does not qualify for current business Property Rehabilitation Tax Assessment relief. Increase in valuation must exceed $100,000.
• Grant for five years for Food/Beverage and Transient Occupancy Tax of up to 50% of the increased revenue impacted by improvements to the site, extension of utility services, or improvements to public infrastructure. The funds can only be used to offset those expenses. This is for properties outside of incorporated Towns. Towns may provide their own incentives as they would be receiving those particular taxes.
• Up to 75% of certain development fees and permits can be rebated.
• Facade improvement grant up to $2,500 with a one for one match by business.
• Maintain current business Property Rehabilitation Tax Assessment relief program.

These proposed local incentives are in addition to to any incentives offered by the State or Federal agencies. Increases in valuation cannot come from assets transferred from within Northampton County.  Some payments may be rebates from the County while others must be grants from the EDA. All payments would be made only after the investments and tax payments are made by the business.

The plan was unanimously sent to public hearing by the board to get citizen input.