Tuesday, April 12, 2005

Municipal Economic Development Zone

Today, Rep. Roger A. Picard introduced the creation of municipal economic development zones (H-6364). I do not claim to be an authority on zoning and associated taxes, but at first glance, this legislation looks pretty good. To summarize:

This act would allow the cities and towns in this state to create a municipal economic development zone within the city or town and would direct that one-half of the sales and use tax collected within the zone would be retained by the city or town to finance the development of the zone.
In essence, half the sales and use taxes collected within these zones would be utilized to make these zones better. It doesn't exempt businesses from any state sales and use taxes; instead seeks to increase the tax base by continually putting back into these zones. In so doing, creating an infrastructure designed to increase revenue streams and causing businesses to salivate at the prospect of municipalities ear marking tax dollars supporting projects which create more opportunities for businesses. A can't lose situation. Again, I'm no expert-but this bill just makes $ense.


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