Tax abatement vote on agenda

The Highlands County Commission has agreed to discuss a tax abatement referendum during a regular meeting in early March.

During a workshop with the board of directors of the Highlands County Economic Development Commission on Friday at South Florida Community College, the commissioners who attended the session decided to place the EDC on the agenda for a meeting whose date has not been set.

The EDC will ask the county commission to include on the ballot the question of should the commissioners be allowed to grant - on a case-by-case basis - property tax exemptions to new businesses. The EDC will also be asked to recommend when it should be on the ballot - either for the primary in August or the general election in November.

Dan Murphy, the EDC's executive director, said during a presentation that tax abatement is a strong economic development incentive and shows potential investors Highlands is serious about creating job opportunities. He added that the neighboring counties in the region have given their county commissions the authority to delay paying taxes for a certain period of time.

Murphy noted that taxes for schools and water management districts would not be affected by the vote.

Commissioner Guy Maxcy said he is more interested in what the county can do to help small businesses that provide the majority of jobs in Highlands.

Maxcy said he was "a little leary" discussing tax abatement.

"We're in a mini depression and are not collecting the taxes we should," he said.

Maxcy said he would like to know what tax abatement has done for the counties including Okeechobee, Hardee, DeSoto, Glades and Hendry. He is interested in learning what companies located there, how many jobs did they bring and if tax abatement was the deciding factor in their decision.

Commissioner Jeff Carlson agreed with Maxcy, saying he would like to see help for small businesses.

According to YourEconomy.Org, the Edward Lowe Foundation found there are 4,841 establishments in Highlands County with between one and nine employees and 427 with 10 to 99 employees. That accounts for more than 20,000 jobs.

John Drennan of Sebring attended the workshop and told the commissioners and EDC board members tax abatements don't work. Drennan said when he lived in the north there were companies that received the tax exemption and then ended up leaving years later.

"The companies got off scot free," he said.