Sarasota County could nix business tax that helps fund EDC
The loss of the revenue would wipe out about one-quarter of the EDC's budget. Sarasota County commissioners are starting the process to end the local corporate tax that helps fund the Economic Development Corp. of Sarasota County. The loss of this revenue would wipe out about one-quarter of the EDC's budget. The current setup costs between $3 and $1,048 per business, with an average contribution of $22 in 2024. The EDC projects $472,000 to be derived from the local business tax next fiscal year, or about 26% of the budget. Other public revenues, including interlocal agreements and some tourist development taxes, would not be affected by the move. The decision on the repeal hasn't been made yet.
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The loss of the revenue would wipe out about one-quarter of the EDC's budget.
Sarasota County is gearing up to end the local corporate tax that helps fund the Economic Development Corp. of Sarasota County.
Commissioners voted 3-2 earlier this month to begin the repeal process; a final decision hasn't been made yet. The EDC's board of directors met on Tuesday to discuss the situation.
"While it will change our normal budget structure, we are confident and assured in the future of our organization," EDC board chair Devaney Iglesias wrote in a letter. "We have a new FY25 strategic action plan, budget and fundraising plan that will keep this organization's continued positive trajectory. The past year has seen remarkable progress, a testament to the dedication and talent of our exceptional team."
Mike Moran, chair of the Sarasota County Commission, has been working for eight years on the effort to ease taxpayers' support for the organization.
"The stories are literally endless. ... I want to be able to leave this commission knowing I did everything in my power to stop this tax," Moran said. "I am not suggesting that the EDC does not exist. My motion is to stop taxing local businesses."
Businesses pay between $3 and $1,048 under the current setup, with an average contribution of $22 in 2024.
The EDC projects $472,000 to be derived from the local business tax next fiscal year, or about 26% of the budget. Other public revenues in the fiscal 2025 budget — including interlocal agreements and some tourist development taxes — would not be affected by the commission's move.
Public dollars in the budget total about $1 million, while $753,500 comes from private revenue streams. Those numbers were supposed to be closer to 50-50 by now.
"We operate with a focus on efficiency and optimal stewardship of these [public] dollars," EDC President and CEO Erin Silk told commissioners. "Last year, I made a commitment to you regarding increasing our private income. I want to assure you that that remains top of mind."
The EDC works to diversify Sarasota County's economy by attracting businesses in industries such as life sciences, manufacturing, film and more. The EDC maintains 120 private investors and thrives under a public-private partnership model, according to Silk.
Fourteen companies are in various phases of site selection, due diligence, permitting or construction for projects expected to be completed by 2027. That represents $49 million in capital investment and 295 new jobs, according to the EDC.
"We've made a lot of strides rebuilding the EDC's brand, proving our value and aligning with county colleagues and business leadership," Silk said.