(a) Any new warehouse taxpayer as defined in Section 787.44(a) which shall, after the adoption of this section, create or increase its full-time average yearly work force of or by 5, 20, 50 or 100 persons over base year employment, shall be eligible for a tax credit against the tax liability due on the gross income generated by the business. This tax credit shall apply only to income taxable under Section 787.03(b) or 787.03(f). The tax credit may be available for a period of five years from the date of application.
The following tax credit shall apply:
Year 1 Year 2 Year 3 Year 4 Year 5 Jobs % % % % % 5 25 25 20 15 10 20 50 50 40 30 20 50 75 75 60 45 30 100 100 100 80 60 40 |
(b) In order for a warehouse business to qualify for this credit, the jobs created must be located within the City and must be utilized in the business's warehouse activity. In addition, if the number of qualifying jobs increase or decrease from the base year employment level, the amount of credit will increase or decrease accordingly in relation to the preceding year, except that if the base year employment level drops below the minimum on the tax credit schedule of five full-time jobs, the credit will be lost.
(c) If during any taxable year, property with respect to which a tax credit has been allowed is disposed of or ceases to be used in a business of a warehouse taxpayer in the City, the unused portion of such credit shall be forfeited for the taxable year in which such event occurs and all ensuing taxable years. Property shall not be treated as disposed of with respect to the warehouse taxpayer or his successor by reason of a mere change in the form of conducting the warehouse business, as long as the property is retained in a warehouse business in this City and the taxpayer retains a substantial interest in the successor business. In this event, the successor business shall be allowed to claim the amount of credit still available with respect to the warehouse business.
(d) Property shall not be treated as disposed of by reason of any sale to a successor business which continues to operate the warehouse business in the City. Upon sale, the successor may elect either to acquire the amount of credit that remains available for each subsequent taxable year, or, to reapply for a new tax credit.
(Ord. 9023. Passed 12-23-86.)