Special Tax District Incentive Program

2015 Special Tax District Grant Program

Initiative

The purpose of the Clinton Downtown Special Tax District Incentive Program is to encourage the rehabilitation of older buildings and/or promote infill growth with new commercial development in the Clinton Downtown Special Tax District.

  1. An application along with proposed development plans shall be submitted by the property owner to the Clinton Planning Department, at which time the application will be reviewed by the Planning staff and City Manager.  Any applications involving work within the Clinton Downtown Commercial Historic District will be required to submit a Certificate of Appropriateness application to the Clinton Historic Preservation Commission for approval prior to submission of project for consideration for Clinton Downtown Special Tax District Incentive Program.
  2. Upon application approval, appraised tax value of site or building is determined by Sampson County Tax Office before renovation/construction begins. (current tax value)
  3. Appraised tax value of site or building is determined by the Sampson County Tax Office after renovations/construction is completed.
  4. Developer pays full amount of newly appraised tax value of property annually.
  5. Sampson County and the City of Clinton “grants” property owner amount paid, minus the original tax value payment before the renovation/construction began.
  6. 5 years is the proposed grant time period.
  7. On 6th year, developer will pay full amount of the newly appraised tax value of the property without grant.

 

Example:
Empty 1 acre of land or vacant building – $50,000 tax value
.83 = $415 Annual Sampson County Tax
.41 = $200 Annual City of Clinton Tax
.18 = $90 Annual Clinton Downtown Special Tax District Tax
$705 Total Annual Tax (Before Development)

Completed development – $250,000 tax value
.83 = $2075 Annual Sampson County Tax
.40 = $1000 Annual City of Clinton Tax
.18 = $450 Annual Clinton Downtown Special Tax District Tax
$3525 Total Annual Tax (After Development)

Grant Proposal
Under above example, owner Pays $3525 annually in County, City and Downtown Special
Tax District Taxes.  Owner is then “granted” back annually $2,820 ($3525-$705) for
5 years. = $14,100 Total Grant

(Note: Tax rates used above represent current rates and are subject to change.)

Benefits

  • Reducing “White Elephant” buildings or blight
  • Supporting locally owned businesses/citizens
  • Supporting “Smart Growth” and controlling urban sprawl
  • Infrastructure is already in place
  • Increasing property value of neighboring buildings already in use or redeveloped