1. What is the Ad Valorem Tax Exemption Program? 

Answer: The City of Miami passed an ordinance that authorizes the City Commission to grant Ad Valorem Tax Exemptions to new and/or expanding business located in the Enterprise Zone (EZ).  This exemption is meant to stimulate economic development and growth, while alleviating conditions of unemployment and the lack of investments in economically depressed areas within the EZ.

2. What’s the difference between a new and expanding business? 

Answer: A New Business is defined as a business, located within the EZ, that begins operations on a site clearly separate from any other commercial or industrial operation owned by the same business and which creates the required number of jobs outlined in Section 56-113 of ordinance 12308.   An Expanding Business is defined as any business, located in an enterprise zone, that increases operations on a site co-located with a commercial or industrial operation owned by the same business and which creates, within the city, the number of new jobs required in section Section 56-113 to employ full-time employees at such location. 

3. Where can I get the tax exemption form to apply?

Answer:  The tax exemption form can be obtained from the City of Miami Department of Economic Development or by clicking the following link: http://www.ci.miami.fl.us/economicdevelopment/BusinessIncentives/TaxExemp.asp

4. How do you qualify for the program?

Answer:  Once the applicant completes the written application and follows the required application procedures, the City of Miami’s Department of Economic Development will review it and pass the information on to the Miami-Dade Property Appraiser for consideration.  The Miami-Dade Property Appraiser will provide the Department of Economic Development the report on its findings.  Based on the appraiser’s findings, the City Commission will recommend approval or disapproval of the exemption. If a business qualifies as a new or expanding business, it may be granted an Ad Valorem Tax Exemption of up to 100% of the assessed value of all improvements or added improvements, respectfully.  However, the percentage will be adjusted on a sliding scale as follows:

Years 1-5….50% (100%, if 20% of new employees hired live in the Enterprise Zone)
Year 6….40%
Year 7….30%
Year 8….20%
Year 9….10%
Year 10…10% 

5. What are the application procedures?

Answer:  Any business that wants an Ad Valorem Tax Exemption must pay a $100 non-refundable application fee and complete a written application prescribed by the Economic Development Department in the year the exemption is desired to take effect.  This will be on or before 1 Mar of the year in which the property is first subject to the Ad Valorem assessment.  The application must be filled out completely and should include:

a.      Name and location of the new or expanding business;

b.      Description of the improvements to real property for which the exemption is being requested, the cost of improvements, and the date the construction/improvements will be started and completed;

c.      Description of the new or expanding business (including sq. footage) and the estimated number of full-time jobs being created on the property;

d.      A copy of the conceptual building plans (if available);

e.      A copy of the building permit (if available);

f.        Number of residential units (if applicable);

g.      Proof that all eligibility requirements have been met;

h.      A reasonable non-refundable processing fee to be established and applied consistently.

i.        Other information deemed necessary by the department