Ad Valorem Tax Exemption (ADVTE) Referendum

Pinellas County Economic Development has provided this information for the purpose of public education regarding this referendum. It is not intended to advocate a position.

What is the ADVTE and why does Pinellas County offer it?

Pinellas County’s ADVTE is an investment tool and incentive designed to assist local businesses with expansion and create new job opportunities. It is also designed to attract new businesses to choose Pinellas County. The current ADVTE was approved by Pinellas County voters in a referendum on August 26, 2014, which authorized the Pinellas County Board of County Commissioners to review and grant qualifying businesses a temporary tax exemption on ad valorem taxes for a period of up to 10 years on new equipment and improvements to facilities. The exemption is a reduction of ad valorem taxes on qualifying tangible property or real property such as new building construction or equipment for businesses that are new or expanding and creating new jobs that pay above the average wage in the area. The exemption applies only to taxes levied by the County.

Why is the ADVTE referendum on the August 20, 2024 Primary Election ballot?

The original approval of the ADVTE by Pinellas voters in 2014 provided Pinellas County the ability to review and consider ad valorem tax exemptions for a period of up to ten years. The program will expire on August 27, 2024.

The referendum proposing renewal of this program will appear on the August 20, 2024, Primary Election Ballot, and all registered voters in Pinellas County are eligible to vote on this nonpartisan issue. If approved, the program will authorize the County to review and consider granting qualifying businesses a temporary County property tax exemption of up to 100% of new capital improvement and/or equipment purchases for up to 10 years, based on a tiered exemption structure, utilizing a pre-set scoring system.

This incentive will have no impact on what the company is currently paying in County taxes on existing land, buildings, infrastructure, and equipment. Qualified businesses in incorporated municipalities and unincorporated Pinellas County would be able to apply for the ADVTE as it only applies to the taxes levied by the County.

What is the question on the ballot?

ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS FOR NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES

Shall the Board of County Commissioners of Pinellas County, Florida be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses that are expected to create new, full-time jobs in Pinellas County?

Yes – For authority to grant exemptions
No – Against authority to grant exemptions

Fast Facts

The referendum must be approved by the voters of Pinellas County.
Exemptions will not increase taxes for Pinellas County residents.
All grants of exemptions must be approved by the Pinellas County Board of County Commissioners.
The exemption benefit cannot exceed a 10-year period.
The program does not exclude qualifying businesses from school tax or taxes levied by any other entity.
Qualifying companies must meet threshold criteria for consideration.
Only new buildings and new equipment built or purchased to accommodate new employees are eligible.
Land is not eligible for the exemption.
A business organization that fails to meet performance requirements or benchmarks will have the exemption revoked in whole or in part.

Frequently Asked Questions (FAQs)

Review FAQs

Why would the County want to have this program in its tool box?

The economic development ad valorem tax exemption program is designed to help existing businesses expand and encourage industries that offer higher-than-average salaries to locate here. The program would enable Pinellas County to stimulate job creation more effectively by allowing Pinellas County to better compete for relocation projects.

Will the program create competition for existing businesses?

The program is targeted at companies that have the majority of their customers outside of Pinellas County, not at firms that would be competing for business in the local market.

What are the advantages for existing local businesses?

This incentive would help existing businesses to expand, purchase new equipment and create new jobs.

What taxes would be eligible for exemption?

Pinellas County property taxes on qualifying buildings and equipment would be eligible. Both the county-wide millage and the Municipal Services Taxing Unit (MSTU) millage in unincorporated areas would be eligible.

Would school taxes be affected?

No. The exemption would apply only to the County-wide ad valorem tax levied by Pinellas County and/or the MSTU tax. It would not apply to school taxes or the taxes of any other entity.

Would Pinellas County’s services be affected?

There are no anticipated impacts to the County’s existing services as a result of the program. In fact, the long-term expectation is that the economic impact to the County from increased investment will increase revenues at the end of the exemption period. Current tax levels on the incentivized properties will be unaffected. Only the taxes on improvements to buildings and the value of new equipment are eligible for exemption.

Are companies that apply automatically granted an exemption?

Companies must first meet threshold criteria required by state law. If all criteria are met, an application will be considered by Pinellas County Board of County Commissioners at a public hearing where public input is taken. The Board will have discretion to grant or deny exemption applications and to determine the percentage and duration of the exemption. Each exemption is granted on a case-by-case basis using a pre-set scoring system.

Are existing buildings and equipment eligible for exemption?

No. Only new buildings, expansions of existing buildings and new equipment purchased by a qualifying business are eligible. Land is not eligible. Equipment purchased to replace existing equipment is not eligible.

What are the threshold criteria?

An existing business may qualify if it:

Manufactures, processes, compounds, fabricates, or produces products at a fixed location and creates 10 or more full-time jobs that are above the average wage in the area; or
Is within a qualified target industry and creates 10 or more full-time jobs that are above the average wage in the area; or
Creates 25 or more full-time jobs and sells 50% or more of its goods or services outside the State for each year the exemption is claimed.

A new business qualifies if it:

Manufactures, processes, compounds, fabricates, or produces products at a fixed location and creates 10 or more full-time jobs that are above the average wage in this area; or
Is within a qualified target industry and creates 10 or more full-time jobs paying an average wage above the average wage in this area; or
Sells 50% or more of its goods or services outside the State and creates 25 or more full-time jobs.

How will Pinellas County monitor businesses that receive an ad valorem tax exemption to ensure that the business fulfills the representations made in the application?

Businesses that are granted an economic development ad valorem tax exemption will be required to file an Annual Report. This Annual Report is a status report from the business to determine if the performance requirements have been met.

What happens if a business that has been granted an ad valorem tax exemption fails to comply with the job creation requirements of the Economic Development Ad Valorem Exemption Program?

A business that does not achieve the performance requirements or file an Annual Report as specified in the application would have the ad valorem tax exemption revoked in whole or in part.

Pinellas County Economic Development has provided this information for the purpose of public education regarding this referendum. It is not intended to advocate a position.