Introduced
by
To exempt a "qualified start-up business" from paying property tax on real and personal property for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation. The personal property tax is a tax on the tools and equipment that businesses use to provide goods and services. It is assessed and levied in the same manner as regular property taxes on real estate.
Referred to the Committee on Finance
Referred to the Committee on Economic Development, Small Business, and Regulatory Reform
Reported without amendment
With the recommendation that the bill pass.
Substitute offered
To replace the previous version of the bill with one that somewhat narrows the definition of qualified start up business to only include firms that did not have net income for two consecutive tax years.
The substitute passed by voice vote
Amendment offered
by
To allow local governments to not include local property taxes in the proposed tax abatement for a qualified start-up business under the bill.
The amendment failed 15 to 23 (details)
Passed in the Senate 32 to 6 (details)
To exempt a "qualified start-up business" from paying property tax on real and personal property for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
Referred to the Committee on Commerce
Referred to the Committee on Tax Policy
