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The two primary objectives of the City in granting tax exemptions for economic development are to provide needed jobs, and to expand the economic and tax base of the City. The City recognizes that a simple system of determining the amount of tax exemption to be granted to reach these objectives may not always be equitable if applied uniformly to different kinds of businesses. As a result, in determining the actual amount of tax exemption granted, the City shall consider the factors and criteria set forth in TMC 3.55.080. In addition, the City shall consider the following guidelines:

(a) Job Quantity Reduction. A job quantity reduction shall be determined at the rate of one percent exemption for each new full-time equivalent job created, not to exceed 70 percent.

(b) Job Quality Reduction. A job quality reduction shall be determined by dividing the company’s average wage rate for the newly created jobs by the Shawnee County base wage rate.* The resulting factor shall be multiplied by 30 percent to determine the job quality payment exemption. The job quality exemption shall not exceed 30 percent.

(c) Capital Investment Reduction. A capital investment payment reduction may be calculated if the amount of the capital investment is significant, if the investment contributes to the potential for new job creation or to the retention of existing jobs, if the investment has a positive impact on a particular geographical area of the City where investment is needed, or if such capital investment adds to the general economic welfare of the City. The capital investment reduction shall be determined at the rate of one percent for each $100,000 in capital investment. The capital investment reduction shall not exceed 80 percent.

The City reserves the right to change the methodology of calculating the tax exemption. For those businesses which have applied for or received an exemption prior to May 1, 1991, the calculation shall be based upon the formula in Ordinance 15898. (Ord. 18365 § 4, 12-21-04; Ord. 17270 § 9, 6-2-98; Ord. 16349 § 9, 7-23-91; Ord. 16349 § 9, 7-23-91. Code 1981 § 42-39. Code 1995 § 138-84.)

*The Shawnee County base wage rate is computed annually using the most recent County Business Patterns published by the U.S. Bureau of Census. The base wage rate is determined by averaging the hourly wage rate for all the County industries with the combined hourly wage rate for all manufacturing and wholesale trade industries.