Local Taxes & Incentives
Ad Valorem Tax Concessions: New or expanding businesses locating in Lee County may be eligible for local ad valorem tax concessions on Real Property. This includes taxes on land and building. Our investment and the term of the concessions depend on your investment in capital improvements, average wage rate, and number of jobs. The concessions will be administered through Industrial Revenue Bond Financing and payment in lieu of taxes.
New or expanding businesses locating in Lee County may be eligible for local ad valorem tax concessions on Real Property. The business or industry must have a minimum capital investment of $.5-1 million, a minimum of ten full-time new jobs, and a minimum hourly wage of $6.50. If the business meets one or more of these requirements, a tax incentive application will be executed using the following guidelines:
Lee County Incentive Formula |
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Factor |
Number of Jobs |
Investment in Millions |
Average Hourly Wage |
1 |
10 |
1 |
$6.50 |
2 |
20 |
2 |
$7.00 |
3 |
30 |
3 |
$8.00 |
4 |
40 |
4 |
$9.00 |
5 |
50 |
5 |
$10.00 |
6 |
60 |
6 |
$11.00 |
7 |
70 |
7 |
$12.00 |
8 |
80 |
8 |
$13.00 |
9 |
90 |
9 |
$14.00 |
10 |
100 |
10 |
$15.00 |
Freeport Exemption: Lee County provides 100% property tax exemption on raw materials, work in progress, and inventory of completed products. The City of Smithville offers 40% exemption and the City of Leesburg has a referendum for “freeport exemption” to be voted on in November of 2001.
Infrastructure Improvements: The Development Authority will use all available resources to assist in infrastructure improvements consisting of water and sewer availability, turn lane, access, etc.
IRB Financing: The Lee County Development Authority will act as a financing vehicle to issue low interest bond financing to qualifying projects.
Lee County Tax Abatement—Schedule B (Retail)
Factor |
Number of Jobs |
(3%) Local Sales Tax contribution as a % of Total Sales |
Capital Investment/Fixed Assets |
1 |
10 |
$250,000 |
$500,000 |
2 |
20 |
$300,000 |
$750,000 |
3 |
30 |
$350,000 |
$1,000,000 |
4 |
40 |
$400,000 |
$1,500,000 |
5 |
50 |
$450,000 |
$2,000,000 |
6 |
60 |
$500,000 |
$2,500,000 |
7 |
70 |
$550,000 |
$3,000,000 |
8 |
80 |
$600,000 |
$3,500,000 |
9 |
90 |
$650,000 |
$4,000,000 |
10 |
100 |
$700,000 |
$4,500,000 |
11 |
150 |
$750,000 |
$5,000,000 |
12 |
200 |
$800,000 |
$5,500,000 |
13 |
250 |
$850,000 |
$6,000,000 |
Any company contributing $30,000,000 in non-wholesale related sales or $900,000 in local annual sales tax contribution or more will be eligible for 10 years of 100% real property tax abatement. They will pay the full tax value in year eleven, based on the current millage rate and assessed value at that time. Ten years of full abatement will be the maximum concession allowable regardless of the level of sales tax or capital investment.