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March 31, 2011 For more information, contact: Bonnie Prigge (573) 265-2993 Lairmore Re-Elected to Chair Gasconade County EEZ Jerry Lairmore, Gasconade County associate commissioner, was selected to serve another term as chairman of the Gasconade County Enhanced Enterprise Zone during its first annual meeting March 17. The Gasconade EEZ was designated Aug. 25, 2010, and includes the cities of Owensville, Hermann, Bland, Rosebud, Gasconade and Morrison and most of the county, except Bourbois Township in Census Tract 9605-02 in the far southern section of the county. 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 Lairmore, the Gasconade County EEZ board includes John Tracy and Mike Knehans of Owensville, Jim Grebing of Hermann, John Estes of Rosebud, Jim Decker of Bland and Dr. Russell Brock of Gasconade County R-2 Schools, Owensville. 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 Gasconade County EEZ 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 Gasconade County EEZ board reviewed and made no changes to the local incentive, which 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. Gasconade County companies considering an expansion or persons needing more information on the Gasconade County EEZ can contact EEZ Chairman Jerry Lairmore at 573-437-3972 or 573-301-0636 or Bonnie Prigge at MRPC at 573-265-2993 or by email at bprigge@meramecregion.org. |