[Adopted 8-16-2005 by Ord. No. 05-15b]
A.
Locally owned small businesses are the businesses
that form the backbone of Lincoln, offer the best services to Town
residents, provide financial and material support to Lincoln's civic,
cultural, and sporting endeavors, and provide continuity between Lincoln's
past and Lincoln's future.
B.
High commercial property tax rates have a detrimental
effect on the ability of locally owned small businesses to compete
against larger branch-office businesses, to expand their facilities
and service offerings, to maintain their levels of civic engagement,
and to expand staff levels.
C.
The Town Council of the Town of Lincoln believes that
promoting the stability and growth of locally owned small businesses
serves a compelling Town interest and it therefore adopts the following
article to encourage the sustainability of locally owned small businesses.
This incentive will be in the form of a 3 year tangible tax exemption
for new investments except inventory.
The following words, terms, and phrases, when
used in this article, shall have the meanings ascribed to them in
this section.
An increment to measure the number of employee hours worked
at a business. Forty hours of paid employee time, regardless of the
number of employees involved, equals one full-time equivalent (FTE).
A list of all property owned by a business that is subject
to tangible taxation in the Town of Lincoln.
Any business whose principal place of business as declared
to the United States Internal Revenue Service is Lincoln, RI, and
whose assets include no greater than two places of business.
Any sole proprietorship, partnership, or corporation employing
10 or fewer full-time equivalents (FTEs).
The local tax paid on commercial personal property excluding
inventory as defined by the Tax Assessor of the Town of Lincoln.
The dollar value against which the level of new investment
in a business entity will be determined under this article.
All businesses that fit the definitions of a
locally owned small business by this article are eligible for the
locally owned small business tangible tax exemption.
A.
The proprietor of a locally owned small business as
defined by this article shall file annually a form to be provided
by the Tax Assessor on or before April 15. This form shall include:
(1)
An itemized list of all property subject to tangible
taxation, its age, condition, and approximate value.
(2)
The proprietor shall also provide proof of local ownership
as defined by this article in the form of incorporation papers filed
with the Rhode Island Secretary of State's office or proof of a Sole
Proprietorship filing with the Lincoln Town Clerk.
(3)
The proprietor shall provide proof of the number of
FTEs employed by his or her business.
B.
The Tax Assessor shall determine whether the applying
business qualifies as a locally-owned small business as defined by
this article and will issue a formal decision to the applying entity.
C.
The initial itemized list will be used by the Tax
Assessor to set an initial Taxable Basis for determining new business
investment. In the event that the applying business submitted a complete
and accurate itemized list as part of its previous year's tax filing
with the Town as determined by the Tax Assessor, that filing shall
be deemed as having already established an initial taxable basis for
determining new business investment.
D.
In the year following the establishment of the initial
taxable basis, if a business entity's tangible taxable value as determined
by the itemized list increases by greater than $10,000 or if a business
has invested more than $5,000 in a single piece of equipment or property,
then the Town Council of the Town of Lincoln shall abate the tangible
taxes due on either the amount of the increase in taxable value of
$10,000 or greater, or the tangible taxes due on the single piece
of equipment or property of $5,000 or greater for a period of three
years.
The Tax Assessor shall adjust the taxable basis
of each participating locally owned small business each year by referencing
the values presented in the submitted itemized list. The value associated
with abated investments shall be included in this adjustment.
The tangible tax exemption for new investment
provided for in this article to encourage the sustainability of locally-owned
small businesses shall not be available to businesses owing delinquent
taxes or fees of any kind to the Town of Lincoln and/or Lincoln Fire
Districts.
