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Barnesville
JOBZ Zones
What
is JOBZ?
Job Opportunity Building Zones (JOBZ) is a new and exciting
tool to stimulate business activity. Eligible businesses in
a JOBZ designated zone operate in an environment nearly free
of state and local taxes. These tax incentives will help new
and expanding companies lower their overall costs and will
help facilitate their growth and prosperity. The City of Barnesville
applied for and received JOBZ designation for over 294 acres
in the Barnesville area, including the property in the City's
Industrial Park.
To view JOBZ sites in the Barnesville area click
here.
To
view the Barnesville Township JOBZ Subzone click
here.
Who
is eligible?
To qualify for the tax exemptions, a business must start-up
in the zone, relocate from outside the zone or expand. Companies
relocating from another Minnesota site qualify by increasing
employment by 20 percent within the first year or making capital
investment of at least 10 percent of gross revenues. In addition,
businesses must also meet local business assistance goals
to qualify for tax exemptions.
How
does JOBZ save you money?
JOBZ
tax incentives will reduce company expenses, increase competitiveness,
and help sustain further growth and expansion in Barnesville,
Minnesota:
Tax
Exemptions:
- State income
tax for operators or investors
- State corporate
franchise taxes
- State sales
and use tax on goods and services purchased
- Property tax
on commercial and industrial improvements
- Wind energy
production tax
Tax
Credit:
- Employment
tax credit for high paying jobs
How
much can it save you?
|
Average
Annual Tax Savings and Credits:
|
| Corporate
Income Tax |
$64,995 |
| Sales
and Use Tax |
$20,168 |
| Property
Tax |
$22,752
|
| Job
Creation Credit |
$2,915
|
| Total
Average Annual Benefit |
$110,830 |
| Total
Net Present Value
of 12-Year Zone To Business
(uses discount rate of 5%) |
$1,306,657
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Example
2 - Metal Fabricator
- New
company with all operations in zone.
- Zone
operations located in owned space valued at 100,000 in
2004, increasing 2% annually.
- Taxable
income of $50,000 in 2004, increasing by 5% per year.Employment
of 3 people in 2004, increasing by 2% on an annual basis
through 2015.
- Average
wages of $18,200, growing by 3% per year.
- Taxable
purchases of $100,000 in 2004, increasing by 5% through
2015.
In the
chart below this example, the $ amounts by line number would
be:
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Average
Annual Tax Savings and Credits:
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| Corporate
Income Tax |
$6,499 |
| Sales
and Use Tax |
$8,866 |
| Property
Tax |
$2,600 |
| Total
Average Annual Benefit |
$17,965 |
| Total
Net Present Value
of 12-Year Zone To Business
(uses discount rate of 5%) |
$215,
590
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Use the
JOBZ Calculator to estimate how much your business can save
by locating in a Barnesville JOBZ zone. The JOBZ Calculator
can be accessed at http://www.dted.state.mn.us/jobz-f.asp
Why Minnesota?
Minnesota
ranks as the most liveable state (7 years straight), according
to Morgan Quitno Press. Minnesota is one of only three states
awarded straight As for business vitality, performance and
development capacity on the Corporation for Enterprise Development’s
2003 report card. Minnesota businesses have the 4th lowest
failure rate in the country, according to data from the U.S.
Small Business Administration. In recent years, Minnesota
has worked to substantially reduce business taxes, saving
businesses over $1 billion annually.
For more
information on the Minnesota JOBZ Program, click here or go
to www.dted.state.mn.us/jobz-f.asp
or contact Barnesville EDA Executive Director at (800) 354-7570.
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