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MARSHALL’S
Enterprise Zones
Would the following
potential benefits be of benefit to your business?
- State sales and
use tax refunds
- State franchise
tax reductions
- City of Marshall
Tax Abatements
- MEDCO added incentives
Then, what are
Marshall’s Enterprise Zones?
The Marshall city Commission would like to obtain new investment in
the areas within the City that are distressed. These areas (map attached)
have been designated as “Enterprise Zones.” A distressed
area has a number of residents who are economically disadvantaged.
To participate, a business needs to be qualified. What does this
mean?
A qualified business is one that meets the following criteria:
- Is engaged in
or has been provided substantial commitment to initiate the active
conduct of a trade or business in any of the Marshall Enterprise Zones;
- At least 25%
of the business’s new employees in the zone are residents of
any Marshall Enterprise zone or are economically disadvantaged individuals
(see definition below); and
- A franchise or
subsidiary of a new or existing business may be certified by the City
of Marshall as a qualified business if the franchise or subsidiary
is located entirely in any Marshall Enterprise Zones and maintains
separate books and records of the business activity conducted in the
zone.
Economically
Disadvantaged Individuals:
An individual who:
- Was unemployed
for at least three months before obtaining employment with a qualified
business; or
- Receives public
assistance benefits, such as welfare or food stamp payments, or a
member of an employee’s immediate family receiving Supplemental
Security Income or Aid to Families with Dependent Children payments
(Food Stamps must be received by the employee only, not a member of
the employee’s immediate family); or
- Has a physical
or mental disability (a disability, which constitutes or results in
a substantial barrier to employment and can reasonably be expected
to benefit in terms of employability from vocational rehabilitation
services. NOTE: Individuals should be certified by an authorizing
agency or doctor); or
- In homeless (lacks
a fixed or regular night time residence or whose residence is a supervised
public private shelter providing temporary living accommodations);
or
- Is a foster child
(an individual on behalf or whom state and local government payments
are made and for whom a court order removing the child from the custody
of the parent and specifying a manager conservator exists) or
- Is on parole
or entering the workplace after being confined in a unit of correctional
facility of the Institution Division of the Texas Department of Criminal
Justice or the Texas Youth Commission; or
- Is an individual
whose total family income meets the low income or moderate income
limits developed under Section 8, United States Housing Act of 1937
for Harrison County. Includes all income by employee, spouse, all
dependents, and family members living with employee as of the employment
date. (Income limits are attached for reference as attachment B).
A business must
be located in one of the zones and 25% of the business employees must
be residents of any of the zones or economically disadvantaged.
What else is Necessary?
To be considered for tax abatement, the business must meet the minimum
criteria of the City Commission Tax Abatement Policy. These criteria
investment, number of jobs, and wages/benefits. A copy of the policy
is included as Attachment C.
Now, let’s talk about process.
How and who administers the Enterprise Zone Program? The decision to
nominate a business to the Texas Economic Development Department is
made by the City Commission. The process begins by a business making
application to the Marshall Economic Development Corporation –
MEDCO. An application is included as Attachment D.
MEDCO office is located at 2660 East end Blvd., S. in front of the TSTC
Campus and their office hours are 8 a.m. – 5 p.m. daily, closed
on weekends and holidays. The phone number is 903-934-8035. The e-mail
address is: info@medco.org
The MEDCO staff will provide the necessary applications and review the
project to determine if it meets the requirements of the City ordinances
and State Law. (The Tax Abatement Policy has additional requirements
that include other taxing districts and a special City Commission committee).
When a project meets the requirements and is recommended to the City
Commission by the MEDCO Board of Directors, the City has the option
to nominate the project to the Texas Department of Economic Development.
With the state’s approval, the business will be eligible for the
benefits.
What are the state benefits?
The State Sales and Use Taxes paid on machinery and equipment, building
materials, labor for the rehabilitation of existing buildings, and electricity/natural
gas purchased for use in the Marshall Enterprise Zones are eligible
for refund. The refund is based on $5,000 for each permanent job created
or retained during the five-year designation period. The number of jobs
for which a refund may be received is based on commitments made in the
project application. Each project is limited to a maximum refund of
$1.25 million over the five-year life of the project and a maximum of
$250,000 per year for the five-year period.
The process involved for the State Sales and Use Tax refund has two
requirements:
1. Certification
of jobs created and/or retained by the Texas Department of Economic
Development.
2. Certification
of sales and use tax paid on qualifying items by the Comptroller of
the Public Accounts.
The Franchise Tax Reduction is taken on its annual report filing for
each year of the five-year designation. The reduction is based o the
amount of capital investment made by the project in the Marshall Enterprise
Zone. The stat’s franchise tax is computed on of two ways and
the benefits are based on the method of computation. The project’s
apportioned taxable capital may be reduced by 50% of the capital investment
made in the Marshall Enterprise Zone. The business must pay the highest
liability.
There are a number of local incentives that really add value to
the Zone project. What are these potential incentives?
Remember the purpose of the Enterprise zone program is to encourage
investment in the zones – distressed areas of the City and local
incentives are very important to the overall project.
Tax Abatement: The City of Marshall Tax Abatement Policy is included
as Attachment C. While the City is not required to provide tax abatements
for a project, they may consider them. Each project is independent and
decided on its merits. While a tax abatement may be granted for manufacturing,
warehousing, and distribution, it can also be granted for commercial
and retail in an Enterprise Zone.
Commercial and retail
can apply if they meet the minimum number of 50 new employees and a
$1000,000 capital investment. The current tax abatement policy allows
up to an additional 20% tax abatement for manufacturing, warehousing,
and distribution.
Waiver of Development Fees
Planning and Zoning: Preliminary and final plat fees, site plan review,
zoning ordinance, zoning verification letter and specific use permit
applications.
Building and Inspections:
Inspection fees
Engineering: Driveway
permits
Utilities: Water
and Waste Water hook-up fees and permits
MEDC): Application
fees
Additional
Incentives
- Fast-track permitting
from the City
- One-stop permitting
fro the City
- Job training
grants from MEDCO
- Assistance in
hiring and screening employees from the Texas Workforce Center
- Training assistance
from Texas State Technical School
- Assistance from
MEDCO in locating sites and buildings
- Economic and
demographic date from MEDCO
- Workforce data
from MEDCO
Summary
The Marshall Mayor and City Commission, city Staff, the Texas Department
of Economic development and the Marshall Economic Development Corporation
are working together to encourage new investment in Marshall. This new
investment will create new job opportunities for the residents of the
Marshall Enterprise Zones. It will also create opportunities for residents
of the City who do not live in the zone, but who are economically disadvantaged.
The City and its partners have out lined major opportunities for business
to invest in the Enterprise Zones.
Attachments
A- Map: Enterprise Zones
B- Income limits
for Harrison County
C- Tax Abatement
Policy
D- Application
TEXAS ENTERPRIZE
ZONE PROGRAM
OVERVIEW
The purpose of the Texas Enterprise Zone Program is to encourage job
creation and capital investment in areas of economic distress. The program
provides communities with an economic development tool to offer state
and local incentives and program priority to new or expanding business
in these designated areas.
Texas Economic Development
(TxED) administers and coordinates local, state and federal efforts.
TxED provides community and business assistance, approves applications
and evaluates and reports the program’s effectiveness to the Legislature.
RESOURCES:
List
of Enterprise Zones(pdf format)
List
of Enterprise Projects(pdf format)
Map
2002-HUD
Section 8 Income Limits by Texas Counties Appendix (word)
(pdf)
Qualified Business Re-Certification:
FY 2001 (
word, pdf
)
FY 2002 ( word,
pdf
)
FY 2003 (word,
pdf)
APPLICATIONS:
Zone Application
Guidelines Word 6.0
(word) (pdf)
Application Word 6.0 (word)
(pdf)
Project
Application
Guidelines Word 6.0 (word)
(pdf)
Application Word 6.0 (word)
(pdf)
Job Certification
Application
Guidelines Word 6.0 (word)
(pdf)
Application Word 6.0 (word)
(pdf)
ANNUAL REPORT:
Annual
Report 2002
Annual
Report 2001
Annual
Report 2000
Federal Empowerment Zone/Enterprise
Community
and Renewal Community Initiatives Linked Websites
U. S. Department of Health
and Human Services
RC/EZ/EC Initiative
H. U. D.
RC/EZ/EC Initiative
U. S. D. A.
EZ/EC Initiative
CONTACT US:
Texas Economic Development
P.O. Box 12728
Austin, TX 78711
512-936-0274 (VOICE)
512-936-0520 (FAX)
512-936-0555 (TDD)
800-735-2989 (RELAY TEXAS)
E-Mail: finance@TxED.state.tx.us
Internet: http://www.TxED.state.tx.us
