Palm Beach County voters face a local ballot question that will determine whether the county continues a 30-year-old program that offers property tax abatements to new or expanding businesses for another 10 years. A “NO” vote ends it on Aug. 31. The Post Editorial Board recommends voters choose “YES.” The program has proven its worth and is still needed in the ongoing competition for those select industries that will make a difference in the county.
Economic Impact and Job Creation
Voters have twice approved extending the program and should do so again. The targeted firms are carefully chosen and typically big operations. They include aviation and aerospace firms, bioscience and life science businesses, corporate relocations, and manufacturers that must create a minimum of 10 new jobs, paying average salaries of at least $72,000 while providing enough capital investment to boost the county tax base and diversify the local economy.
“It gives the county another tool in its toolbox to attract a company to come here that will generate a lot of jobs,” Kelly Smallridge, president and CEO of the Palm Beach County Business Development Board, told Post reporter Mike Diamond. “It is not really used that often. A company might say that it wants to come but Tennessee, for example, is offering very attractive incentives. This program would allow us to compete with other places.”
Business property tax incentives are nothing new. Local and state governments routinely offer such breaks to lure and retain companies and the jobs and revenue they bring into their communities. From 2013 to 2023, the county abatement program provided $6.2 million to six businesses, an investment that seems to have paid off with 2,800 new jobs, another 2,246 retained jobs, along with a capital investment of $428 million.
Checks and Balances
Smallridge points out that the tax benefits don’t start until the applicant gets approval from the Palm Beach County Business Development Board, the Palm Beach County Commission, and the Palm Beach County Property Appraiser, which verifies improvements to real property and/or tangible personal property not already on the tax rolls. Even then, the abatements don’t start until the jobs and the new facilities are all up and running.
The allocated tax breaks can go up to 10 years but there’s no upfront cash payments made to entice applicants, so advocates of the program contend there’s not much room for wasting taxpayer money. The county’s Department of Housing and Economic Development does check to make sure the companies fulfill their promises. But we recommend that the county’s Office of Inspector General independently audit the program so that taxpayers are assured that those who benefit from the tax breaks deserve them.
Palm Beach County has long been a magnet for retirees who have moved from parts of the country where cold temperatures and high taxes prompted them to seek a new home. The area is now witnessing a new migration, this time in the form of small businesses, out-of-state healthcare facilities, private banking firms, and tech start-ups. This new private sector investment is a testimony that our community is an attractive place to do business in Florida.
The signs of growth and potential change are everywhere. Palm Beach County is holding its own in the fierce competition for those firms and industries that will make a demonstrable difference in our community. The longstanding tax abatement program is essential for future development. Voters should extend it by voting YES.
