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March 30, 2011 For more information, contact: Baker Re-Elected to Chair of Osage County EEZ; Luker to Head Chamois EEZ Annual meetings held March 17, 2011 Byron Baker, a Linn banker, was selected to serve another term as chairman of the Osage County Enhanced Enterprise Zone while David Luker of Chamois will head the Chamois Area Enhanced Enterprise Zone. Both groups held their annual meetings March 17. The Chamois EEZ was designated Aug. 15, 2006, and includes the city of Chamois and a portion of Benton Township to the south and east of the city. The Osage County EEZ was designated May 26, 2010, and includes all but three small pieces of land in southern Benton Township. The Osage zone adjoins the Chamois zone. By statute, the EEZ board must meet annually to select a chairman, review membership and incentives. The annual meetings of the EEZs in Gasconade, Maries and Osage counties were conducted as a part of the Gasconade Valley Enterprise Zone’s regular March meeting in Belle. Luke Holtschneider of the Missouri Department of Economic Development was the guest speaker for the evening and told the group that the EEZ program is the most popular of all state incentive programs. Part of the program’s attractiveness is that EEZ tax credits are refundable, he said. “They are very liquid if a company doesn’t have the liability for them,” Holtschneider said. To get all the benefits available, a company must fill out the appropriate forms and get DED’s approval before they start the project, Holtschneider emphasized at the meeting. If an expanding company starts the project or hires people for the pending expansion without DED approval on tax credit request, they will lose the state tax credits, he explained. Holtschneider stressed the program is entirely performance-based. “They don’t get anything until they meet the requirements,” he added. In addition to Baker, the Osage County EEZ board includes Joe Scott of Westphalia, Ron Hoffman, Jim Hulse and Dave Dudenhoeffer of Linn, Joe Schmidt of Argyle and Darryl Haller of Freeburg. In addition to Luker, the Chamois EZZ board includes Dale Hackman, Robert Schollmeyer, Tom Starke, Larry Backes and Mark Mehmert and Denise Nolte, pending confirmation. The EEZ designation offers two incentives—property tax abatement and discretionary tax credits—to qualifying companies. To qualify, a new or existing company must be located in the zone, must invest at minimum of $100,000, create two new jobs and pay at least 50 percent of its employees’ health insurance costs. Qualifying businesses in the two Osage County EEZs are the same as those allowed by the EEZ legislation. With the exception of retail, gambling, education, religious and eat and drinking establishments, most other businesses are eligible. The determination is based on the NAISC code—the industry code— that the business files its taxes under. During the meeting, the Chamois and Osage County boards reviewed and made no changes to their local incentives. Chamois offers 100 percent abatement on new improvements for 10 years with the company having the opportunity to extend that for another five years if they are paying wages 125 percent of the statewide annual wage. Osage County’s incentive is a minimum of a 50 percent abatement on real property tax improvements for 10 years up to an 80 percent abatement for 20 years, based on new jobs created, average payroll and private investment. Any property currently on the tax rolls will continue to be taxed, and the incentive applies only to real property improvements—new construction or major renovations that would increase the value of the property. Qualifying businesses also have the opportunity for state tax credits that are issued at the discretion of the Missouri Department of Economic Development (DED) and are available on a first come, first serve basis. Tax credits, when offered, are based on 2 percent of the new payroll and ½ percent of the new investment for five years. Companies needing more information on the EEZs can contact David Luker in the Chamois area at 573-636-5227, Byron Baker for the balance of the county at 573-680-2645 or Bonnie Prigge at MRPC at 573-265-2993 or by email at bprigge@meramecregion.org. |