Q - What is the proposed tax exemption?
A - The ad valorem tax exemption for economic development is a proposed economic incentive program designed to encourage new businesses to locate to St. Lucie County, while assisting existing local businesses to expand and create new job opportunities.
The program authorizes the St. Lucie County Board of County Commissioners to grant qualifying businesses a temporary county property tax exemption of up to 100% for up to 10 years. Businesses will still pay other taxes, including schools, fire and water districts.
Q - Is the tax abatement program new to St. Lucie County?
A - No, but since its inception in 1992, the program has helped dozens of businesses relocate to St. Lucie County or expand their operations here creating nearly 1,000 new high-paying jobs. This program was approved by voters in 1992 and renewed by voters in 2002, 2012 and 2022.
Q - Why would the county want to have this program in its toolbox?
A - The economic development ad valorem tax exemption program is designed to diversify the county’s business base by encouraging industries that offer higher-than-average salaries to locate here while helping existing businesses expand. The program enables St. Lucie County to more effectively attract new businesses in an increasingly competitive market. Several municipalities across the region and state, including our neighbors to the north and south, already have this incentive in place.
Q - How will it be administered and what are the costs?
A - Existing staff within the St. Lucie County’s economic development team administer the program, working with other agencies to make sure those receiving the incentives are meeting the terms of the agreement, including hiring the promised staff at the higher pay range. There are no additional costs associated with administering the program.
Q - Will the program create more competition for existing businesses?
A - The program was envisioned to encourage diversification in the business community, not to create competition between existing businesses.
Q - How can existing businesses take advantage of this opportunity?
A - This incentive encourages existing businesses to expand, purchase new equipment, save jobs and create new jobs.
Q - What taxes would be eligible for exemption?
A – St. Lucie County property taxes on qualifying buildings and equipment would be eligible. Taxes for voter-approved debt would not be included in the exemption program.
Q - Would school or fire district taxes be affected?
A - No. The exemption would apply only to the countywide ad valorem tax levied by St. Lucie County Commissioners. It would not apply to school taxes, water management district taxes or taxes set by another entity.
Q - Would St. Lucie County’s services be affected?
A - Only positive impacts to services are anticipated. In fact, an expanding economy improves our region’s quality of life by providing additional resources to maintain roads, invest in schools and pay for services; spreading out costs and keeping tax rates lower.
Q - Are companies that apply automatically granted an exemption?
A No. Companies must first meet the threshold criteria required by state law. If all criteria are met, an application will be considered by the St. Lucie County Board of County Commissioners at a public hearing where public input is taken. The County Commissioners will have the discretion to grant or deny exemption applications and to determine the percentage and duration of the exemption. Each exemption is granted on a case-by-case basis.
Q - What are the threshold criteria?
A - For New Businesses or Organizations:
A business or organization that manufactures, processes, compounds, fabricates, or produces products at a fixed location and creates 10 or more full-time jobs paying an average wage above the average wage in this area; or
A business or organization that is a qualified target industry and creates 10 or more full-time jobs paying an average wage above the average wage in this area; or
A business or organization that sells 50% or more of its goods outside the state and creates 25 or more full-time jobs; or
A business or organization that leases or owns office space on a site separate from any other commercial or industrial operation that it owns and creates 50 or more full-time jobs; or
A business or organization located in an Enterprise Zone or Brownfield Area that creates new full-time jobs.
For Existing Businesses or Organizations:
A business or organization that manufactures, processes, compounds, fabricates, or produces products at a fixed location and creates 10 or more full-time jobs that are above the average wage in the area; or
A business or organization that is a qualified target industry and creates 10 or more full-time jobs that are above the average wage in the area; or
A business or organization that creates 25 or more full-time jobs and sells 50% or more of its goods outside the State for each year the exemption is claimed; provided that the business increases operations on a site co- located with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of at least 10% or an increase in productive output of at least 10%; or
A business or organization located in an Enterprise Zone or Brownfield Area that increases operations on a site located within the same zone or area co-located with a commercial or industrial operation owned by the same business or organization.
Q - Are existing buildings and equipment eligible for exemption?
A - No. Only new buildings and new equipment built or purchased by a qualifying business after the application for exemption is filed are eligible. Land is not eligible. Equipment purchased to replace existing equipment is not eligible. If the property has been taxed before, it is not eligible, regardless of any ownership change.
Q - What happens if a business that has been granted an ad valorem tax exemption fails to comply with the job creation requirements of the Economic Development Ad Valorem Tax Exemption Program?
A - A business or organization which does not achieve the performance requirements specified in the individual authorizing ordinance could/would have the ad valorem tax exemption revoked in whole or in part.
Q - Didn’t Voters Just Approve This?
A - In December 2021, a definitive majority of voters in Port St. Lucie's special election approved extending Port St. Lucie's ability to offer tax abatements of the city’s real estate property and tangible personal property taxes for another 10 years. Under state law, however, each county and each city must place this question in front of the voters every 10 years. Since residents of Fort Pierce and Port St. Lucie are also county residents, residents of these cities will be asked to vote on this question twice, once regarding city taxes and once regarding county taxes. Voters who live in the unincorporated county will only vote once, in the county tax referendum.
Regardless of whether a resident lives in one of our cities or in the unincorporated county, using the abatement tool to bring high-quality jobs and investment to St. Lucie County benefits everyone in the county. When businesses locate or expand here, the total taxes paid on the property are ALWAYS higher than they had been previously. These companies help reduce the tax burden residential properties
would otherwise pay for our schools, our emergency services, voter-approved debt, water quality, children's services and more.
It was approved by voters countywide in 1992, 2002, 2012 and again in 2022.
Q – Isn’t This Just A Corporate Giveaway?
A – No cash incentives are ever provided to companies from St. Lucie County. A tax abatement is simply a temporary reduction in the amount of some taxes a company will pay. No other benefit is provided. The abatement does NOT provide any other incentives—no property transfer, no use of tax dollars to benefit the company, no municipal guarantees or subsidies of any kind. And if the company must pay all its other taxes, make the capital investment and create the number of jobs they committed to.
Q – Will This Raise My Property Taxes?
A – No. If anything it will help lower the tax rate, by improving the property values in St. Lucie County and by creating new or expanding existing businesses and creating high-paying jobs. The tax abatement can only be used when a company expands existing operations or moves to St. Lucie County—and only for NEW property and equipment. It is never available for the land the facility is on or for any existing buildings or equipment. Therefore, there is no reduction in a property’s existing taxes.
The company still pays 100% of all taxes for schools, fire services, water management, children’s services and voter-approved taxes. Those tax payments can add up to hundreds of thousands of dollars—money homeowners might otherwise have to pay for these services or agencies.
This has been in place for 30 years and there are plenty of success stories about this performance-based program. For example, TAMCO paid $38,146 this year toward the Crosstown Parkway debt. Since that debt is a set amount, that’s $38,146 Port St. Lucie homeowners will never have to pay.
There is an additional dollar-for-dollar savings for Port St. Lucie homeowners when a business purchases land in Tradition’s Southern Grove. Currently, the city’s taxpayers finance annual taxes and assessments due to other taxing authorities on unsold Southern Grove properties. Once a parcel is sold, the business, and not St. Lucie County’s homeowners, pays the taxes and assessments each year.
