Ordinance No. 6849 levies a 0.0184% sales tax credit against the state sales tax for local revitalization financing.  SB 5045 authorizing the tax credit was passed by the state legislature during the 2009 regular session.  The intent of the legislation was to provide financial assistance to cities to assist with financing public improvements in an identified revitalization area to promote community and economic development.

The City first applied for the use of local revitalization financing on August 11, 2009 and the Department of Revenue approved the City’s application on September 16, 2009, authorizing up to $250,000 per year for the local revitalization program (Promenade capital improvements).

In 2010, the City issued $7.24 million in 2010 C/D Bonds for the purpose of funding capital improvements for the Promenade.  In October 2020, the City refunded the remaining portion of these bonds by issuing the 2020B LTGO Bonds. The balance of the 2020B bonds at the end of 2021 was $3.92 million.  Funds from REET2 funds, combined with EDA grants and interest earnings, are used to pay the annual debt service costs of the local revitalization project.

The tax credit is available to the City for up to 25 years.  2022 will be the thirteenth year that the City has asked the State for the tax credit.  As provided by the state, in order for the City to continue receiving the tax credit, the City must request this each year by ordinance.

Based upon historical taxable retail sales, the above rate of 0.0184% is estimated to generate $250,000 for local revitalization funding during the State’s fiscal year, July 1, 2022 to June 30, 2023.