STARKVILLE — In an effort to attract more industry to Oktibbeha County, the Board of Supervisors is considering a policy that would offer tax exemptions to businesses bringing 10 or more new jobs to the county.
Supervisors are considering participation in the Mississippi Development Authority”s Growth and Prosperity Program, which designates counties in economically challenged areas of the state as GAP counties and provides income, franchise, sales and property tax exemptions to companies that locate or expand in those counties. At least 30 percent of a county”s population must live below the federal poverty level or the county must have an unemployment rate at least twice the state average for a county to qualify for the program. Approximately 34 percent of Oktibbeha County lives below the poverty level, according to Kathy Gelston, director of financial resources for the Mississippi Development Authority.
Gelston and Greater Starkville Development Partnership CEO Jon Maynard told supervisors Monday the tax exemptions would help the county appear more attractive to prospective businesses.
“This is an effort to make Oktibbeha County much more competitive,” Maynard said. “And when I say much more competitive, I”m talking about twice as competitive as we”ve ever been.”
Gelston shared a similar sentiment.
“When I think about this from a marketing perspective, I probably would say, ”Hey look, we”ve got 30 percent of our citizens living in poverty so we have this great program. We”ve got this great economic development tool that we can offer you if you want to create 10 or more jobs in our county.””
Businesses eligible to participate in the GAP Program include manufacturing, processing, assembling, storing, warehousing, servicing, distributing or selling of any products or goods, including products of agriculture; enterprises for research and development, including, but not limited to, scientific laboratories; or other businesses or industries that will further the public purposes of the GAP Act, as determined on a case-by-case basis by MDA.
Limited eligibility
Retail or gaming businesses or electrical-generation facilities are not considered eligible business enterprises.
Eligible entities that locate or expand and bring at least 10 new jobs to a GAP area receive the tax incentives for up to ten years, but still must pay school, fire and police taxes.
“Trying to attract industries to a county is an extremely competitive process,” Oktibbeha County Board of Supervisors President Marvell Howard said. “Anything that would give us an advantage would be great.”
District 2 Supervisor Orlando Trainer was concerned about the lost tax revenue.
“I just hate to give up anything, especially these days,” Trainer said.
But Gelston said the board is going to have to make that decision.
Comfortable with a tax break?
“What you have to decide is, as a board, are you comfortable saying that if a company is going to locate here and they could locate somewhere else besides here, and they”re going to create 10 jobs, that you”re comfortable with the state of Mississippi giving a property tax exemption,” she said.
District 4 Supervisor Daniel Jackson was concerned some of the larger industrial companies in the area could take advantage of the program by adding 10 minimum-wage jobs, and the county would lose their tax revenue.
“I”m trying to look at our millage situation because that”s money we already had in our budget,” Jackson said.
Gelston said the exemptions, which also apply to purchases of equipment, only would apply to purchases made after the business is approved for the GAP Program. She also said she wasn”t trying to talk supervisors into joining the program. She was just letting them know Oktibbeha County qualifies, and how much it could help attract new businesses.
On the table
“I do not believe a good company makes their decision based purely on taxes,” Gelston said. “I think if a company is making their decision based purely on incentives, you don”t want them, but sometimes it gets you that visit. It gets them to come to your community and see what you really have to offer, and that”s a big deal. If they never make it here and they never see the great strides Oktibbeha County and the city of Starkville have made, you don”t get the location.”
Supervisors tabled a resolution to join the GAP Program so they could research the matter further. The board”s next meeting is scheduled for April 19 at 5:30 p.m. in the Oktibbeha County Courthouse.
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