Susan Engle

Sales and Use Tax Exemption

Silicon technology-based industry transactions involving manufacturing or research equipment
Purchases of machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale
Labor, parts and materials used in repair of and incorporated into machinery and equipment that qualify for sales tax exemption upon purchase (phased in over four years, 25% exempt on July 1, 1999)
Electricity used in the manufacturing process (phased in over five years, 80% exempt on July 1, 1999)
Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft
Commercial space activity - launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida
Labor component of research and development expenditures---------------------------------------------------------------------
Summary of Florida's Tax Incentive

Qualified Target Industry Tax Refund Programs
This program provides an inducement for target industry to locate new facilities in Florida or to expand existing facilities in Florida. The program provides tax refunds of $3,000 per new job created. The incentive is increased to $6,000 per job if the company locates in a rural county or an Enterprise Zone. Higher awards are available to companies paying very high wages. To qualify for the “QTI” program, a company must create at least 10 new jobs (or a 10% increase for expanding Florida companies), pay an average of at least 115% of area wages, have a significant positive impact on the community and have local support.

Quick Response Training Program
The Quick Response Training Program provides grant funding for customized training to new or expanding businesses. The program is flexible and structured to respond quickly to meet business training objectives. A local training provider – community college, area technical center or university – is selected and available to assist in the application process and program development or delivery. If the business has a training program in place, a state training provider will supervise and manage the training program and serve as the fiscal agent for the grant funds. Reimbursable textbooks/manuals, materials/supplies and training equipment.

Economic Development Transportation Fund
This grant program provides up to $2 million to local governments for the construction or improvement of transportation infrastructure needed to accommodate new or expanding industry.

Expedited Permitting Assistance
State and local permit streamlining procedures are available to assist businesses in obtaining necessary permits and approvals in a quick, efficient and predictable manner.

Specialized Incentives
Your project may qualify for opportunities such as urban or rural tax credits, and incentives for brownsfields and enterprise zones.
---------------------------------------------------------------------
Local Property Tax Incentive
New and expanding businesses can be granted an exemption from property taxes on improvements to real property and for tangible personal property. In order for a company to be eligible for this incentive, it must first meet the definitions of a new or expanding business as defined below:

New Business:
A manufacturer which establishes ten or more full-time jobs.

A business with more than 50% of its sales outside the State of Florida which establishes 25 or more jobs.

Office space of a new Florida corporation housing 50 or more full-time employees of the corporation.

The above are applicable if the business is on a site clearly separate from any other facility owned by the same business.

Any business located in a slum or blighted area as defined by Section 163.355, Florida Statutes.

Expanding Business:

• A manufacturer that adds a minimum of ten new employees and increases employment by 10% or increases productive output by a minimum of 10%.
• A business with more than 50% of its sales outside the State that adds a minimum of 25 new employees and increases employment by 10% or increases productive output by a minimum of 10%.
• The expansion must be on the same or a co-located site of the business’ current operations.
• If a business meets one of the above definitions as a new or expanding business, it may then file an application for the Economic Development Property Tax Exemption with the local County Commissioners or the appropriate municipality or both. After the city or county commission receives this application, it must submit the application to the county property appraiser for review. After the property appraiser makes the report as to the fiscal impact of granting the exemption, the county or city commission shall then adopt an ordinance in the usual manner-granting the exemption.
• A business cannot receive exemption from school taxes or water management district taxes. Also, a business must pay taxes that were approved by the voters of a city or county to pay for bond issues and other special tax levies authorized by the voters of a city or county.
• The exemption can only be for the improvements to the real property and for tangible personal property. The land on which the new or expanding business is to be located will still be taxed.

• The State offers programs such as the Qualified Target Industry (QTI) Tax Refund Program (tax refund), a Sales Tax Exemption on Electricity and Steam (exemption), a High Impact Performance Incentive (grant) and more.

Tax Information: State

• Corporate Income Tax 5.5%
• Personal Income Tax 0.0%
• Retail Sales Tax 6.0%
• Intangible Tax (per $1,000) $1 - $1.50
• Groceries and medicine exempt from retail sales tax

Small Business Assistance
Below are nine resources proven helpful to start up and maintain a succesful small business!

• Small Business Administration - http://www.sba.gov
• Small Business Development Center -http://www.fausbdc.com
• US Chamber of Commerce Small Business Center - http://www.uschamber.com/sb
• (The US Chamber of Commerce's Small Business Center is a one-stop shop for small businesses, containing everything from practical business advice to the latest small business news from Washington, D.C.)
• Florida Small Business - http://www.floridasmallbusiness.com
• Enterprise Florida - http://www.eflorida.com
• The Florida Venture Forum - http://www.flvencap.org
• Odeon Group (Small Business Administration Intermediary) - 305 681-9600
• Micro Business USA - 305 438-1407
• First Florida Capital - (888) 320-5504

Melbourne Starting A Business
Melbourne and Brevard) County is an area that is growing rapidly and welcomes new business.
The Melbourne (Brevatd County) metropolitan area, which includes Titusville, Cocoa, Meritt island and Palm Bay, has a population of more than 500,000 It is defiitely one of the most diverse metro areas in all of Florida. Although the areas are sprawled out, they all have a small town feel, a great infrastructure and a “user-friendly attitude.”
Whether you’re considering relocating a company or starting a business from scratch, Melbourne wants your business.
To consider:
Employees:
Over 185,00- in the Brevard County area.
The market and potential:

Brevard id the Third Hottest Market in U.S. Brevard's August 2005 sales averaged 29% higher than a year earlier, following June's 9% record price increases in a single month. Hundreds of refurbishers continued to upgrade older homes, raising prices significantly, but our back-to-school period historically slumps compared to spring and summer. Nationally, sales of new U.S. homes jumped 6.5% to a record high in July, defying economists' year-long predictions of a decline.

Some of the more significant advantages to living and establishing businesses in Florida, with respect to taxes are:

• No state income tax
• No corporate income tax on sub-chapter S corporations
• First $5000 of taxable income apportioned to Florida is exempt
• No state property tax on inventory or equipment
• No business inventory tax
• No corporate franchise tax on capital stock
• No corporate tax on limited partnerships, individuals, Estates and private trusts
• No collected or assessed state property tax
• No sales tax on "boiler fuels" used at a fixed Florida location in an industrial manufacturing, processing or compounding process
• No sales and use tax on goods manufactured or produced in Florida for resale or export outside Florida
• Corporation accounts receivable (one third) exempt from intangible property tax
• Exemption of employee stock options from employer
• No property tax on goods-in-transit for up to 180 days

• While these are in themselves incentives, the following are additional incentives offered by the State and local government working together to provide you with an environment conducive to your success.

  • Ad Valorem Tax Exemption (real and personal property) is offered by the local government and is based on the financial impact projected on the County (number of employees, capital expenditure, etc.)

• 

  Susan R. Engle
  REALTOR®
  Coldwell Banker Ed Schlitt
  907 US Highway 192
  Melbourne, FL 32901
  Direct: (321) 951-3300
  Cell: (321) 543-8172
  Fax: (321) 951-3080
  E-mail
• www.brevardsbestagent.com

Melbourne and Brevard County Investment opportunities
Due to the incredible growth in both tourism and long term residents due to a favorable cost of living and employment opportunities, investments here are a strong consideration.
Aside from commercial investments the two situations most people are looking for in Florida are

• Vacation homes or Condos that can be rented out … Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A person looking for a home to eventually retire to and rent out in the meantime to help pay the mortgage.
• The best areas to rent are anywhere near the water and the best rents will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get. In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified agent. He/she can guide you through the process completely—including setting up property management

As to MELBOURNE and BREVARD COUNTY-where would the best rentals probably be located?

• Melbourne Beach
• Malbourne old downtown
• Cocoa Old downtown
• Cocoa Beach
• Homes and Condos on the Indian River(all locations)
• Tutusville (Indian River)
• Merritt island-waterfront
  The downtown areas in larger cities are seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas.

Renting your home out as a seasonal (vacation rental)or long term.

• Long-term renters are generally easier to find as there is a shortage of homes for rent. So, if you want to buy something for retirement or a vacation home and rent it out to help your payments-this is typically the easiest way. (Long term rentals are considered to be anything over 6 months, as the tenants don't pay the 11.5% Florida tax)
• Generally long-term rentals should be unfurnished.
• Initially your agent’s company will do a credit check before submitting a lease to you, then with your approval of the lease, they typically collect the first and last months rent plus a security deposit which is typically a months rental amount.
• As to utilities- The tenants generally take the lease to the water, electric, phone and cable people and have the utilities put in their name and of course they pay their own deposits. In most areas of Florida, garbage is included in the tax bill-so there is no separate garbage bill.
• Seasonal rentals. Most residential areas can only rent monthly or 28 days, meaning the owner can only rent the home out 12 times per year. This means about 5 months of income-Jan-Feb-Mar and July-August. There are some April and June monthlies.
• As to what is the best rental situation , that is size, which areas, views, pools, how water and boating accessibility affects rental amounts and the typical rental amounts for both long and short term, plus the fees involved, ask your agent.

As to extra costs and what is necessary to have a Home as a Rental.

• When you rent your home out you generally need to license it through the County. This costs is typically minimal and your agent’s company should be able to handle the paperwork for you.
• The County and the Tax people want the homes licensed so they know where there may be tax dollars coming in. When your home is used as a rental, in effect you are operating the same as a hotel or motel and so they come under their safety guidelines.
  This really applies to the Keys but may be the cases statewide:
• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $450.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and your agent has a signed contract from you authorizing them as a rental agent, then it can go into the rental pool

  Melbourne and Brevard County Investment opportunities
  Due to the incredible growth in both tourism and long term residents due to a favorable cost of living and employment opportunities, investments here are a strong consideration.
  Aside from commercial investments the two situations most people are looking for in Florida are

• Vacation homes or Condos that can be rented out … Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A person looking for a home to eventually retire to and rent out in the meantime to help pay the mortgage.
• The best areas to rent are anywhere near the water and the best rents will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get. In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified agent. He/she can guide you through the process completely—including setting up property management

As to MELBOURNE and BREVARD COUNTY-where would the best rentals probably be located?

• Melbourne Beach
• Malbourne old downtown
• Cocoa Old downtown
• Cocoa Beach
• Homes and Condos on the Indian River(all locations)
• Tutusville (Indian River)
• Merritt island-waterfront
  The downtown areas in larger cities are seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas.

Renting your home out as a seasonal (vacation rental)or long term.

• Long-term renters are generally easier to find as there is a shortage of homes for rent. So, if you want to buy something for retirement or a vacation home and rent it out to help your payments-this is typically the easiest way. (Long term rentals are considered to be anything over 6 months, as the tenants don't pay the 11.5% Florida tax)
• Generally long-term rentals should be unfurnished.
• Initially your agent’s company will do a credit check before submitting a lease to you, then with your approval of the lease, they typically collect the first and last months rent plus a security deposit which is typically a months rental amount.
• As to utilities- The tenants generally take the lease to the water, electric, phone and cable people and have the utilities put in their name and of course they pay their own deposits. In most areas of Florida, garbage is included in the tax bill-so there is no separate garbage bill.
• Seasonal rentals. Most residential areas can only rent monthly or 28 days, meaning the owner can only rent the home out 12 times per year. This means about 5 months of income-Jan-Feb-Mar and July-August. There are some April and June monthlies.
• As to what is the best rental situation , that is size, which areas, views, pools, how water and boating accessibility affects rental amounts and the typical rental amounts for both long and short term, plus the fees involved, ask your agent.

As to extra costs and what is necessary to have a Home as a Rental.

• When you rent your home out you generally need to license it through the County. This costs is typically minimal and your agent’s company should be able to handle the paperwork for you.
• The County and the Tax people want the homes licensed so they know where there may be tax dollars coming in. When your home is used as a rental, in effect you are operating the same as a hotel or motel and so they come under their safety guidelines.
  This really applies to the Keys but may be the cases statewide:
• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $450.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and your agent has a signed contract from you authorizing them as a rental agent, then it can go into the rental pool

• 

  Susan R. Engle
  REALTOR®
  Coldwell Banker Ed Schlitt
  907 US Highway 192
  Melbourne, FL 32901
  Direct: (321) 951-3300
  Cell: (321) 543-8172
  Fax: (321) 951-3080
  E-mail
• www.brevardsbestagent.com

About Brevard County cost of living

The cost of living index is based on the composite price of groceries, housing, utilities, transportation, health care, clothing and entertainment.

Cost of living indexes will generally be higher in areas that offer access to beaches, culture, arts and recreation. In addition areas, that offer a wider variety of services such as health and education will run higher due to higher wages, and increased quality of living.

Cost of living indexing explanation
A figure of 100 points is used as an average both for the USA and Florida. For example:
Boise Idaho is ranked at a 99
Boston Mass is rated at 240
San Francisco at 217
Statewide, Florida cities come in from a low of 90 and up.
One way to compare Florida areas to salary requirements
For example-If you were relocating from Portland Oregon (whose rate 1s 120) to Melbourne fl, and you currently make $50,000 per year, the formula is as follows
Take the destination index, in this case Melbourne-92.72 and divide by Portland’s index-120, then multiply by a salary of $50,000. This will give you a figure of $38,633.00 which would be required to make in Melbourne to have the same quality of life.

See comparable Florida statewide
* Re cost of living--in some areas Real Estate has went up dramatically however costs that factor in such as food, transportation, rents etc have not increased at the same rate-so in some areas, even though housing is expensive, the overall rating may still be low
2007 stats per Sperlings best Places http://www.bestplaces.net/

Bradenton-114
Cape Coral-Ft Myers-108.0
Ft Lauderdale-132.0
Fort Walton-Destin-120
Jacksonville metro-94.0
Key Largo-146.0
Key West-168.0
Miami metro-138.0
Melbourne-92.72
Orlando metro-94.0
Palm Bay-84.56
Palm Coast-Flagler-125.01
Panama City-86.35
Pensacola metro-82.0
Sarasota-108.75
Tampa 94.60
St Pete-Clearwater-91.58
Vero-Beach Indian River-122.87
West Palm Beach metro-112.05
(Population Weighted-State Average=100
See national comparisons
Cost of living (100 = nationwide average)

* New York, NY -164.50
* Long Beach, CA -135.71
* Palo Alto, CA -234.42
* Boston, MA -127.60
* Malibu, CA -492.80
* San Francisco, -187.23
* Greenwich, CT 215
* Chicago, IL -126.45
* Dallas Tx -92,94
* Atlanta Ga -112.21

For more information about cost of living go to either Sperlings best Places http://www.bestplaces.net/
or Accra's site at http://www.coli.org/

The Melbourne area (Brevard County) is ranked at 92.72 on the price index.

Housing.
A minimum two bedroom single family homes in Brevard County.
From January 2005 through July 26/2005, the median sold price is $217,000.
The median price for properties sold as of Aprilt/2008 is $211,000.

Go to the link below to get more information regarding City and Municipal services.
http://www.melbourneflorida.org/serv/

A personal observation: Melbourne is a small city and so the drive time to shopping, recreation etc is short…meaning you won’t burn as much gas, which in this day and age is definitely a help. I find the car insurance and home insurance rates very reasonable. (If you live on or near the water and require flood insurance, the rates will be higher)

In conclusion, Melbourne is a great place to live.

Susan R. Engle
REALTOR®
Coldwell Banker Ed Schlitt
907 US Highway 192
Melbourne, FL 32901
Direct: (321) 951-3300
Cell: (321) 543-8172
Fax: (321) 951-3080
E-mail