CRESTVIEW – On Nov. 5, Okaloosa County voters will decide whether to extend the county’s economic development ad valorem tax exemption (EDATE) program for another 10 years after the county commission approved a resolution adding the issue to the ballot by a 4-1 vote.
First introduced in 2004 and renewed for another ten years in 2014 with 75% voter approval, the EDATE program allows new and expanding businesses that meet certain county-established average wage and job creation requirements to receive a property tax exemption for up to ten years, whether for new construction, upgrading existing facilities or purchasing new equipment.
According to information provided by the OneOkaloosa Economic Development Council in the county commission’s agenda package, the tax exemption has been used 12 times and has attracted nine companies to Okaloosa County. Those nine companies have created 229 new jobs with an average salary of $57,876.
In addition to creating new jobs, Okaloosa County has awarded $74,555 in tax exemptions over the past decade, resulting in $45.6 million in capital investments during that period.
While these numbers sounded good to the majority of the board, Commissioner Nathan Boyles was the only one to vote against the issue.
Boyles, who is nearing the final months of his term on the board and owns Adams Sanitation, said that while he voted to vote on the EDATE program in 2014, he has since grown dissatisfied with the issue because he believes the exemption program favors businesses from other cities more than local businesses and that he feels the investment has not paid off sufficiently for the county.
Boyles referred to the figures from the 10-year program overview.
“I’m just telling you all, this is a drop in the bucket. It’s a drop in the bucket,” Boyles said, referring to the revenues of these companies compared to the tax exemptions granted.
“My humble opinion as a business owner is that these awards had no influence whatsoever on the decisions of these companies. In fact, most of these companies were already operating and growing and thriving in this community anyway, and for them this was just an added bonus,” Boyles added. “I don’t think it actually incentivizes or leads to the creation of these jobs, and so I look at the (return on investment) very differently.”
Board Chairman Paul Mixon also weighed in on the matter, saying he largely agreed with Boyles. Mixon, however, disagreed, noting that things could change if Shoal River Ranch is developed. He also noted that neighboring counties could be seen as a more favorable location for new businesses if Okaloosa County does not extend the program.
“I think we would be delisted even faster if we didn’t have this little tool,” Mixon said. “I also don’t want to take it out of people’s hands to make the decision whether to keep it or not.”
