HCS/HB 366 - This act modifies provisions of law regarding community improvement districts by allowing the use of community improvement district revenues to construct, reconstruct, install, repair, maintain and equip any property, device, structure, or equipment necessary for the acquisition, installation, and improvement of any real or personal property used to create solar power.
This act allows the governing body of any municipality to enter into loan agreements, or sell, lease, or mortgage municipal property to private entities for the development of a technology business facility project. Transactions involving the lease or rental of such properties will be exempt from state and local sales taxes and any leasehold interests on such properties will not be subject to property taxes. The act allows municipalities to sell or otherwise dispose of municipal property to private entities for technology business facility projects provided that the terms and methods utilized reasonably protect the economic well being of the municipality. Any private entity which transfers property to the municipality for purposes of a technology business facility project will reserve the right to request that the municipality transfer such property back to the entity at no cost.
This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities including telecommunication and internet services used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction, repair, or remodeling of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the department of economic development for certification. Such application must show that the project will result in at least five million dollars of new facility investment over a three year period.
The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities including telecommunication and internet services. The exemption will only apply to the increase in expenditures for utilities over the previous year's expenditures. The exemptions for tangible property will be available only on the increase in expenditures over the average of the previous three years expenditures. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the department of economic development for certification. Such application must show that the project will result in at least one million dollars of new facility investment over a one year period.
The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.
This amendment modifies provisions of the Quality Jobs Act to allow qualified companies located within high risk metropolitan statistical areas to receive benefits for capital investment and job retention. To receive benefits, such companies must commit retain at least one hundred fifty jobs with wages equal to or greater than the lesser of the county or state average wage and commit to make at least ten million dollars in new capital investment at the project facility within a three year period or commit to make five million dollars in new capital investment at the project facility within a three year period and maintain an annual payroll of at least six million dollars during the period in which benefits are received.
A qualified company that meets all of the requirements be allowed to retain ninety-five percent of withholding taxes for full-time jobs located at the project facility for a period of ten years. In addition, such companies will be entitled to receive tax credits issued each year over a ten-year period equal to three percent of payroll for the retained jobs provided that the total amount of benefits received by such company cannot exceed six percent of retained payroll per year. In lieu of all other benefits, such companies may receive tax credits equal to ninety percent of withholding taxes, for all full-time jobs at the project facility that such company would otherwise be able to retain under the provisions of the act, over a five-year period.
Qualified companies located within high risk metropolitan statistical areas that meet all applicable requirements will be eligible to receive up to three years of state and local sales tax exemption for purchases of tangible personal property and building materials used to construct, repair, or remodel a project facility. Qualified companies receiving benefits under this act will be ineligible to receive benefits under the Manufacturing Jobs Act.