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HomeMy WebLinkAbout87-5-3004E ORDINANCE NO. 87-5-3004.. AN ORDINANCE AMENDING ORDINANCE NO. 86-12-2954 WHEREAS, on December 23, 1986, the Board of Commissioners adopted Ordinance No. 86=12-2954,`establi'shing.an.Enterprise Zone within the City of Paducah, and setting forth benefits accruing to 1 qualified businesses within the -Enterprise -Zone; and .. WHEREAS,_ the intent of the Board of Commissioners as to the property qualifying for the tax and fee relief granted in Section 3 of Ordinance No. 86-12-2954 requires clarification; and WHEREAS, it is the intent of the Board of Commissioners to clarify Ordinance No. 86-12-2954 herein.. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. Section 3 of Ordinance No. 86-12-2954 is hereby amended to read as follows: "A. Qualified New Businesses in the Enterprise Zone shall be entitled to receive the following tax or fee relief: 11(1) For a period of five (5) years the City shall: a. Personal property - not charge ad valorem` taxes on personal property purchased after the application for designation has been filed with the local administrator. b. Real property - grant a fifty percent (50%) reduction in the tax assessed value of real estate used in direct operation of the Qualified Business within the Enterprise Zone. "(2) For a period of five (5) years business licenses .shall be issued at no cost. "(3) A reduction of one-half (1/2) for refuse fees for the duration of the Enterprise Zone shall apply to the location of the business which qualified the business for inclusion in the Enterprise Zone. "(4) Building and electrical plan review and building permit fees shall be waived for the duration of the Enterprise Zone. "(5) Issue at no cost special auto stickers for employees of the Qualified Businesses for the duration of the Enterprise Zone. "(6) Reduce the employee earnings tax by fifty percent (50%) for all employees of the Qualified Business for a period of two (2) years. "B. Qualifying existing businesses in the Enterprise Zone shall be entitled to receive the following tax or fee relief: 65 "(1) A qualified exist business shall mean those entities actively engaged in trade or business within the City of Paducah prior to filing their application with the local administrator. "(2) A qualified existing business shall be entitled to the same tax or fee relief .as a qualified new business in the Enterprise Zone, except that said relief shall only apply to the expanded activities within the City of Paducah. "(3) The tax relief granted shall not apply to property that was used in the business prior to the application being filed with the local administrator, nor to replacements of the property being used in the business, except that if replacement property has a greater value than the property being replaced, then the increase in value shall be subject to the tax relief set for in Section -A, above. "(4) Business Licenses - For a period of five (5) years, the gross receipts reported for business licenses shall not be increased. The licenses will be based on the highest gross receipts reported to the City Treasurer's Office on either of the license returns filed in the prior two (2) years. The base amount of gross receipts will not be adjusted up for the five (5) year period; however, the business will be assessed any increase in license fee due to a change in the business license rates adopted by the City during the five (5) year period. "(5) Refuse fees - See Section A(3) above. it "(6) Building and Electrical Plan Review and Building �y Permit Fees shall be waived for the duration of the Enterprise Zone. "(7) Issue at no cost one special auto sticker for all employees of the qualified business for the duration of the Enterprise Zone. "(8) Reduce the Employees Earnings Tax by fifty percent (50%) for all qualified employees of the qualified business for a period of two (2) years. Qualified employee is one who holds a new position created after approval by the Kentucky Enterprise Zone Authority, and which has a substantial part of the work performed within the Enterprise Zone. The tax credit will not apply to new positions which are replacing old positions, but only to new positions actually created by the expansion of the qualified business." B C. The waiver of any tax or fee shall not waive the filing of applications or obtaining any permit or license. 6 D. All of the tax and/or fee relief referred to above shall l l .' start upon certification of the Qualified Business and shall remain in effect as long as its respective certification is valid, or said incentive shall have expired. These benefits set forth herewith shall be available upon certification, regardless at what period of time during the duration of the Enterprise Zone said certification shall occur. SECTION.2. _.The application of this ordinance shall be retroactive. -to November 14, 1986. SECTION 3. This ordinance shall be read on two separate days and will become effective upon of title and a certified summary therof. JOE VITERISI I1 Mayor Introduced by the Board of Commissioners May 12, 1987 Adopted by the Board of Commissioners May 27, 1987 Recorded by Lenita Smith, City Clerk, May 27, 1987 Recorded .by The -Paducah_ Sun