(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
EXPANDING BUSINESS. Any of the aforesaid defined businesses that create at least ten new full-time jobs at that business location within the municipality, invest at least $100,000 into expanding the footprint of the business, or invest at least $100,000 into the remodeling or renovation of an existing structure within the municipality for the purpose increasing gross revenue.
NEW BUSINESS.
(a) Any new commercial, wholesale, retail, manufacturing or service entity which shall physically locate its principal place of business within the corporate limits of the city, or an existing commercial, wholesale, retail, manufacturing or service entity whose principal place of business is located outside the corporate limits of the city and has relocated its principal place of business within the corporate limits of the city, either by purchase of real property or by virtue of a lease of five years or more duration, and which is subject to the city’s business and occupation tax. NEW BUSINESS shall also include existing commercial entities which are brought within the corporate limits of the city by way of annexation or minor boundary adjustment, commercial entity which has conducted business within the corporate limits of the city currently or in the past, and which changes its name and changes its business structure shall be considered as a new business under this section, unless prior written approval has been given by the City Manager.
(b) Additionally, the acquisition and continued operation of an existing commercial entity by another entity subject to the business and occupation tax of the city, whether such acquisition is by purchase or lease, shall not be considered a NEW BUSINESS.
PROPERTY. Real property and improvements thereto, but only if such property was purchased or leased for use as a component part of an ongoing business operation located within the city.
(B) Business and occupation tax liability.
(2) The credit may only be taken when an otherwise qualifying business files the required business and occupation tax return on or before the required due date. If the return is not filed timely then the credit will be disallowed for the time period in which the return is delinquent.
(C) Credits. The city, by approval and adoption by City Council, but only at the request of the Mayor, may offer the aforesaid tax credits to new or expanding businesses, or newly annexed businesses, by the following:
(1) An elimination of municipal taxation on up to 100% of gross income heretofore stated, for up to ten years, from the beginning of such new business; and
(2) Said percentage of reduction in taxable gross income may vary from year to year, for up to ten years.
(D) Administration and enforcement of this section. The administration of this section is vested in, and shall be exercised by, the Finance Director of the city, who in connection therewith shall prescribe all necessary forms and returns. The Finance Director will promulgate all necessary rules and regulations that are necessary for the making of returns, and for the enforcement of this section.
(E) Finance Director determination. The Finance Director is hereby authorized to make any necessary determinations regarding forfeiture, qualification or carryover of the tax credit authorized by this section, and, may determine that a particular tax credit application violates the spirit and intention of this section and deny the credit on that basis.
(F) Severability. If this section or any portion thereof, or the application of this section in any circumstance is held unconstitutional or invalid, such unconstitutionality or invalidity shall not affect other sections of this chapter, and to this end each and every section, division, provision, clause and phrase of this section is declared to be severable.
(Ord. passed 11-12-2019)