Brevard County commissioners approved putting a referendum on the Nov. 5 ballot that would extend the county's 30-year-old economic development tax-abatement program for another 10 years.
The vote was 4-1, with Commissioner John Tobia voting no.
The Economic Development Commission of Florida's Space Coast helps administer the program, in which the county property tax breaks can be up to 100% for up to 10 years.
When a company applies for a tax abatement under this program, an EDC panel uses a formula taking into account the number of jobs the company plans to create, the average salary of those jobs and the capital investment the company plans to make to determine what tax break to recommend. The final determination of the tax break is up to the County Commission. The breaks are rescinded if the companies don't meet their goals.
Companies creating at least 10 jobs are eligible to apply for the program, although companies creating larger numbers of high-paying jobs typically would be in line for more lucrative incentives.
The program must be renewed every 10 years. If the extension is not approved by voters, the program will end in November.
Tobia amendment rejected
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Even though some commissioners have routinely voted against specific proposed tax abatements, most of them expressed support for putting the proposal on the Nov. 5 ballot.
Tobia wanted additional language added to the ballot item to detail how a number of tax abatements granted in recent years later were rescinded because the company did not meet its job-creation targets. He said that would provide more information to voters, so they could make "an informed decision" at the ballot box.
When other commissioners would not support that amendment, Tobia voted against the measure to put the item on the ballot.
Commissioner Tom Goodson said Tobia's amendment amounted to "coloring the water" to make the program look bad.
Tobia isn't a fan of the program, telling other commissioners: "As a laissez-faire Republican, the last thing I want elected officials to do is make business decisions of choosing winners and losers."
'Important tool'
Neal Johnson, who chairs the EDC's advisory Ad Valorem Tax Abatement Council ― which vets applications for property tax break in the program and recommends the appropriate level of tax abatement to the County Commission ― told commissioners that the program is "an important tool for us to have in our tool belt" to attract jobs to the county.
Johnson, a senior mortgage loan officer at U.S. Bank in Melbourne, cited data from a study of the program and its participants — done by a faculty member and graduate students of Florida Institute of Technology ― that he said indicated the value of the tax abatement program.
The study said, from 2005 through 2023, companies in the program created 4,523 direct jobs, which generated an estimated 4,777 spinoff jobs at other companies. Those direct and spinoff jobs created $4.43 billion in wages during that time frame. The study found that, during that period, companies in the program saved $17.4 million on county property taxes through the incentive, while also paying $83.8 million in other county, municipal and school taxes.
In an interview after the vote, Johnson said: "I was pleased that four of the commissioners supported this. I think it's good that we're letting voters decide."
During commission debate, Tobia questioned the impartiality of the Florida Tech study, noting that the professor leading the study is the founding chairman of the EDC's Innovation Council and that the study was not peer-reviewed.
"That's disgusting," Tobia said, referring to the EDC's contention that the study was independent research. "Either you think we're idiots or you didn't do your research."
Tobia also said the study didn't address companies that received tax breaks that later were rescinded because they did not meet hiring goals; or companies that were turned down for tax breaks, but expanded in Brevard anyway.
Noting that EDC paid nothing for the study, Tobia told Johnson: "You got your money's worth."
Giving voters a choice
Other commissioners supported putting the proposal on the November ballot to give voters the choice of whether to continue it.
County Commission Chair Jason Steele ― who sponsored the resolution to put the measure on the November ballot ― said, although the local economy currently is strong, the program is important as "an insurance policy" for "when things turn around and go bad."
Commissioner Rob Feltner said, while he reserved the right to vote against specific tax break requests, he had no issue with letting voters decide whether to continue the program itself.
This is the fourth time the tax abatement program is the subject of a voter referendum. It initially was approved by 51.40% of Brevard voters in 1994. Then it was renewed twice for an additional 10 years — by 62.59% of voters in 2004 and by 70.31% in 2014.
Dave Berman is business editor at FLORIDA TODAY. Contact Berman at dberman@floridatoday.com , on X at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54
This article originally appeared on Florida Today: Voters to decide on extending Brevard County's tax break program for expanding businesses
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