§ 9-64. Rebate—Machinery and tools used by manufacturing businesses located within an enterprise zone or subzone or technology zone.

(a)

Any manufacturing business which either (i) locates in an enterprise zone or subzone or technology zone or (ii) undergoes a "qualified facility expansion or renovation" as defined herein shall qualify for the rebate specified below, to the extent permissible under the Constitution of Virginia. For any "small business" as defined by Code of Virginia § 2.2-1604, a "qualified facility expansion or renovation" shall mean (i) creating five net new jobs and at least $5,000,000 in new capital investment in machinery and tools or (ii) creating ten net new jobs and at least $1,000,000 in new capital investment in machinery and tools. For a business not meeting the Code of Virginia definition of a "small business", a "qualified facility expansion or renovation" shall mean (i) creating 25 net new jobs and making at least a $100,000,000 capital investment in machinery and tools, or (ii) creating 50 net new jobs and at least $5,000,000 capital investment in machinery and tools.

(b)

An application for enterprise zone or technology zone benefits must be submitted to the department of economic development and the benefit accessed by the business within one-year of start of operations in the enterprise zone or subzone or technology zone, or within one-year of a qualified facility expansion or renovation in order to receive the machinery and tools tax rebate.

(c)

The rebate amount shall be 100 percent of the tax on the assessed value being reported for machinery and tools taxes for each of five consecutive years (the "rebate period"), beginning the tax year after the business located in the zone or the tax year after the business achieves a qualified facility expansion or renovation. However, in the case of a qualified facility expansion or renovation, the rebate shall be limited to 100 percent of the tax on the increase in the assessed value over the value from the base year assessed value. The rebate period cannot be extended solely by relocating within or to another zone or by an ownership change. The treasurer shall issue a rebate within 60 days of receipt of full payment of the machinery and tools tax for each year of the rebate period.

(d)

To receive a rebate, a business must file the annual return of machinery and tools, along with a detailed list of assets, with the office of the commissioner of the revenue. The business must pay the resulting machinery and tools tax and then the allowable portion of these taxes will be rebated. The commissioner may request additional documentation from the business, and that documentation must be received within ten days from the date of this request unless the commissioner agrees, in his sole discretion, to an extension of time for the submission of such documentation. In no case, however, shall the extension exceed 90 days. Failure to request the rebate or to submit the required documentation, as determined by the commissioner in a timely manner shall result in forfeiture of the machinery and tools rebate incentive for that year of the rebate period. Neither a sale and lease-back agreement nor a subsequent purchase of equipment originally leased shall extend the rebate period beyond the original five-year period.

(e)

The rebate of tax on qualifying leased property must be issued directly to the lessor unless the lessee provides documentation showing that the lessee either paid the tax on such property directly to the county or reimbursed the lessor for such taxes.

(f)

Any rebate available pursuant to this section shall first be used to satisfy any delinquent debts owed to the county by the business.

(Code 1978, § 8-14.3; Ord. of 11-12-97, § 1; Ord. of 9-27-06(2); Ord. of 11-13-13(1), § 1; Ord. of 11-13-19(1), § 1)

Editor's note— Ord. of 11-13-13(1), § 1, amended the title of § 9-64 to read as set out herein. Previously § 9-64 was titled rebate—machinery and tools used by certain businesses located within an enterprise zone or subzone.

(Code 1978, § 8-14.3; Ord. of 11-12-97, § 1; Ord. of 9-27-06(2); Ord. of 11-13-13(1), § 1; Ord. of 11-13-19(1), § 1)

Editor's note

Ord. of 11-13-13(1), § 1, amended the title of § 9-64 to read as set out herein. Previously § 9-64 was titled rebate—machinery and tools used by certain businesses located within an enterprise zone or subzone.