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ICASARI US COUN'PrI <br /> <br />MEMORANDUM <br /> <br />To: Blair Bennett <br /> Bill Kouri <br /> <br />From: Frank W. Clffion, Jr. <br />Date: January 11, 1999 <br />Re: Administration of Industrial Development Incentive Grants <br /> <br />Per our conversations as ~urther clarification for administration of the County's Industrial Development <br />Incentive Grant Program,/the listed notations are provided. <br /> <br />(A) Within the incentive guidelines the terminology ,under no circumstances would any new or <br /> expanding inatmy receive an industrial development incentive grant that lowered the act tax <br /> payments...' docs not factor into consideration annual adjustments to personal propeay values <br /> associated with normal business depreciation schedules authorized by state statute or the periodic <br /> revaluation of real property (as currently underway) that would most likely result in reductions to <br /> the property mx rate and ultimately reduce the mount of taxes paid on personal property. <br /> <br />To claxify these issues: <br /> <br />(l) <br /> <br />(2) <br /> <br />It is understood thal the "net" taxes paid by a business concern will be impacted by the annual <br />application of business depreciation schedules and variations on the property tax rate. <br />Adjustments to "net" taxes paid should allow for reduction in values associated with application of <br />authorized depreciation. <br /> <br />Adjustment to real property values through revaluation will result in a trax rote reduction which <br />will reduce the "net" taxes paid on personal property assets because personal property values are <br />no._.! subject to revaluation except through the business audit process which recovers unreported <br />assets. <br /> <br />(B) <br /> <br />Any change in the "net" taxes paid should not penalize a grant recipient on personal property <br />calculations due to real property revaluation. <br /> <br />In the spirit of the Industrial Development Incentive Grant Program, it is possible to misinterpret <br />the grant threshold levels of $5,000,000, $20,000,000 and $100,000,000 to apply throughout the <br />grant period. (i.e.: $5,000,000 of investment in personal property not accounting for routine <br />depreciation applications would fall below the qualification level in year two when depreciation is <br />applied.) <br /> <br /> Office of the County Manager <br /> <br />P. O. Sox 707 · Concord, NC 28026-0707 ,, (704) 788-8100 * Charlotte 375-0829 <br /> <br /> <br />