Fort Pierce, St. Lucie County asking voters to renew tax-abatement program Aug. 23
Fort Pierce and St. Lucie County will be asking voters to renew their tax-abatement programs for another 10 years at the Aug. 23 primary election.
The ad valorem tax-exemption program is an economic-development tool that provides performance-based incentives to encourage new construction, capital investment and job creation.
Fort Pierce voters first approved the program in 2002; St. Lucie voters in 1992. State law requires it be reauthorized every 10 years.
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"This tool is definitely needed in terms of helping create better (higher paying) jobs and also to diversify the economy to expand the tax base," said Pete Tesch, president of the Economic Development Council of St. Lucie County.
The program does not affect homeowners' property taxes. Companies, however, still pay school and fire-district taxes and taxes assessed by agencies such as the Children’s Services Council and Florida Inland Navigation District.
To qualify for the temporary tax breaks, a company must meet requirements while it builds a new facility and purchases equipment.
Under the guidelines, exemptions could be revoked if a company fails to meet performance criteria.
In St. Lucie County between 2012 and 2021, 10 companies created 1,020 new jobs and were abated roughly $3.1 million in taxes through the program, according to records.
For example, Tropicana Products Inc. — which in 2011 reinvested $60 million by creating up to 22 new manufacturing jobs and building three buildings at its Glades Cut Off Road location — was exempt from paying more than $1 million in taxes between 2012 and 2016.
FedEx and Cheney Brothers are among more recent companies awarded tax breaks.
In 2010, Fort Pierce awarded five-years of exemptions, beginning in 2014 with the first year being tax free, to Walmart for its distribution center on South Jenkins Road, according to city records.
Under the agreement, the company was to pay 10% of its property taxes in the second year, 40% in the third year, 60% in the fourth year and 80% in the fifth year.
All Treasure Coast counties and numerous cities use this economic tool. In December, about 59% of Port St. Lucie voters said yes to renewing its tax-abatement program.in December 2021.
Olivia McKelvey is TCPalm's watchdog reporter for St. Lucie County. You can reach her at olivia.mckelvey@tcpalm.com, 772-521-4380 and on Twitter @olivia_mckelvey.
This article originally appeared on Treasure Coast Newspapers: Fort Pierce, St. Lucie voters asked to renew tax-abatement program Aug. 23
