§ 18-9. Local sales and use tax refunds for businesses within enterprise zones.

(a)

Short title. This section shall be called the "Gainesville Local Sales and Use Tax Program Ordinance of 1995."

(b)

Establishment of sales and use tax refund program. The following shall be the program of the city for the qualification for and agreements for the refund of city sales and use tax within areas designated as enterprise zones by the city council:

(1)

Definitions.

a.

Qualified business shall mean a person, including a corporation or other entity, that the Texas Economic Development Commission certified to have met the following criteria:

1.

The person is engaged in the active conduct of a trade or business in the enterprise zone or has made a commitment to operate in the enterprise zone.

2.

At least twenty-five (25) percent of the business employees in the enterprise zone are residents of the enterprise zone or economically disadvantaged individuals; and

3.

If a business that is already active within the enterprise zone at the time it is designated and that operates continuously after that time, the business has hired residents of the zone or economically disadvantaged workers after the designation so that those individuals constitute at least twenty-five (25) percent of the business's employees in the enterprise zone.

b.

Qualified employee shall mean an employee who works for a qualified business and who performs at least fifty (50) percent of his service for that business within the enterprise zone.

(2)

Authorized refunds.

a.

Machinery and equipment. A qualified business may be eligible to receive a refund of up to the full amount of municipal sales and use tax on the purchase, lease, or rental of equipment or machinery for use in its operations within the enterprise zone.

b.

Material. A qualified business may be eligible to receive a refund of up to the full amount of municipal sales and use tax on the purchase of material for use in remodeling, rehabilitating, or constructing a structure in the enterprise zone.

c.

Qualified employees. A qualified business may be eligible for a refund of up to two thousand dollars ($2,000.00) of local sales and use taxes paid by a qualified business or employee, for each qualified employee hired and remaining on the payroll for a period of not less than one (1) year.

(3)

Refund limits.

a.

Amount. Refunds payable to any one qualified business shall not exceed two hundred fifty thousand dollars ($250,000.00).

b.

Term. Refunds may be paid for a period of up to five (5) years from the date of certification as a qualified business.

(4)

Payments. Upon application, qualification, execution of an agreement and presentation of satisfactory documentation of local sales and use tax paid, which qualified for refund under this program, a business will receive payment of the refund due at the end of the calendar quarter.

(5)

Agreements. All agreements providing for the refund of taxes shall be written, contain an expiration date and require the person or business to provide the documentation necessary to support a refund claim.

(Ord. No. 670-12-95, §§ 1, 2, 12-19-95)