Escambia Voters Approve Tax Break Referendum

February 1, 2012

Escambia County voters overwhelmingly approved a referendum Tuesday that allows the county to continue a tax break for jobs program known as EDATE for the next 10 years.

EDATE — the Escambia County Ad Valorem Tax Exemption — is a property tax abatement program that’s designed to encourage businesses to relocate to Escambia County and encourage existing businesses to expand. The tax abatements are good for up to 10 years.

With 90 of 90 precincts reporting Tuesday night, the referendum passed with 36,413 votes in favor and 10,070 votes against, or 78.34% to 21.66%.

“Over 4,000 new jobs in Escambia County are credited to EDATE,” Escambia County Administrator Randy Oliver said prior to the vote.  Navy Federal has created 3,000 new jobs under the EDATE program, while International Paper has added 496. In all, 4,346 jobs have been created under the EDATE program, according to county records.

“It is a tool for economic development,” Oliver said. “The county gives up tax dollars in exchange for jobs.”

In order for a company to qualify to pass on property taxes under EDATE, there must be an increased assessed value on their property. “So in theory it does not impact current tax revenue,” Oliver added.

The tax waivers do not impact any other taxing district — tax revenue is not cut for schools, the Northwest Florida Water Management District or the city of Pensacola.

Companies do not automatically qualify for a full 100% abatement — different levels of discounts are given under the program. A full tax waiver would require an investment over $5 million and over 100 new jobs that pay an above average wage. Anything else and the percentage of forgiven taxes decreases.

The EDATE program has been in place since the early 1990’s and must be approved every 10 years.  If approved Tuesday, the EDATE program will continue through 2022 in Escambia County.

Comments

6 Responses to “Escambia Voters Approve Tax Break Referendum”

  1. Dishearted on February 2nd, 2012 12:58 pm

    I would like to know where they get there numbers, I worked at I.P. and just spoke with a H.R. person and was told that I.P. only has 450 I.P. employees. where did they get 496 people from…..

  2. PSUEarl on February 1st, 2012 9:41 pm

    That’s right, we had it for the last ten years and look how great it’s been!!! ha ha

  3. Sandra on February 1st, 2012 6:25 pm

    A little over 46 thousand people voted out of a county pop of over 300 thousand. Thats very sad

  4. jeeperman on February 1st, 2012 3:41 pm

    Is it not odd that a citizen vote is required before the BOCC can grant reduced property taxes to a business,
    Yet no vote by the very same citizens is NOT required before the BOCC can increase property taxes on all property owners ????

  5. me on February 1st, 2012 11:05 am

    It is not going to help boost the economy. It was already in effect. We have had the EDATE for the last 10 years. This was just a renewal not something new.

  6. Jane on February 1st, 2012 3:48 am

    I hope this will help boost the economy here. It has worked for other places…..

Written by William Reynolds · Filed Under News