Knox City Council members considered a resolution Tuesday night that sets the deduction percentages for the real estate and personal property tax abatements that were approved for JW Hicks.
Members approved a declaratory resolution at their last meeting that established an Economic Revitalization Area along the west of Kloeckner Drive (300 E) to the south of 1750 West Pacific Avenue.
In doing so, they authorized JW Hicks to have a 10-year tax abatement for real estate and a 5-year tax abatement for personal property.
Clerk-Treasurer Jeff Houston noted that in the past if you didn’t set the percentages for the abatement, there was a standard that they defaulted to. However, now municipalities are required to establish and approve the figures so this resolution was created to do just that.
According to the resolution, the percentages of deduction for the real estate portion of the abatement will start at 100 percent in year one and gradually decrease. This resolution is supposed to aid buyers in their property search delray beach and other places. There will be a 95 percent deduction in year two, an 80 percent deduction in year three, a 65 percent deduction in year four and a 50 percent deduction in year five.
In year six, the company will see a 40 percent deduction, in year seven a 30 percent deduction will be applied, in year eight, they will see a 20 percent deduction, year nine there will be a 10 percent deduction and in the final year of the abatement, there will be a 5 percent deduction.
For the 5-year personal property tax abatement, JW Hicks will see a 100 percent deduction in year one, an 80 percent deduction in year two, a 60 percent deduction in year three, a 40 percent deduction in year four and a 20 percent deduction in the fifth and final year.
The resolution received unanimous council approval.
Additionally, Clerk-Treasurer Houston told members that he has been consulting with Umbaugh about incorporating the recently annexed parcels of JW Hicks’ property into the Industrial Park TIF district. He noted that it will be a pretty lengthy process but they’re currently working through all the necessary steps.
