Economic Development Exemption

Unlike most exemptions, the process of granting an Economic Development Exemption begins with the city or county. The Property Appraiser’s Office is involved at the end of the application process, and throughout the lifetime of the approved exemption. To qualify for the Economic Development Exemption, improvements to real property must be made or tangible personal property must be added or increased after the date of the ordinance authorizing the exemption to be applied. This exemption can be granted for up to 10 years and up to 100% of the Assessed Value of real estate improvements and/or tangible personal property for: 

• New businesses

  • Must manufacture, process, compound, fabricate, or produce for sale items of tangible personal property at a fixed location which is a manufacturing plant or; is a “target business” defined by Section 288.005(7) Florida Statutes.

  • Business establishing 25 or more new jobs with a sales factor less than .50.  

  • Office space owned and used by a business newly domiciled in Florida that houses 50 or more full-time employees as long as the business first begins operations on a site clearly separate from other commercial / industrial operation owned by the same business. 

  • Any business located in a designated enterprise zone or brown field area that begins operation on a site clearly separate from other operations owned by the same business. 

• Expansions of existing businesses that are expected to create new, full-time jobs within the city or county (or both).

  • A business establishing 10 or more new jobs paying an average wage for the jobs which is higher than the area average wage.

  • A business establishing 25 or more full-time jobs with a sales factor less than .50 and the new jobs must result in a net increase of employment of 10% or greater.

  • Business located in a designated enterprise zone or brownfield area that increases operations. 

Before an application for Economic Development Exemption can be made, the city or county must have held a referendum of the voters within its jurisdiction, approving the authority to grant the exemption. Following the successful referendum, the jurisdiction must then enact a master ordinance that details the terms of the exemption. If a property owner wants to take advantage of the Economic Development Exemption, they must apply for the exemption AND the exemption must be approved via ordinance before improvements begin or tangible property is added or increased. This ordinance defines the terms and conditions of the exemption specific to the individual property. 

The exemption is not applied to land, replacement of equipment, leased equipment, or leasehold improvements. 

• Economic Development Exemption Application