Councilmember David A. Catania - Catania Introduces Incentive Legislation To Attract Businesses To Georgia Avenue

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January 6, 2009
05:20 pm
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Catania Introduces Incentive Legislation To Attract Businesses To Georgia Avenue

WASHINGTON DC...Councilmember David A. Catania (At-Large) re-introduced legislation to provide real property, personal property, business income tax, and sales tax incentives to promote the economic development of Georgia Avenue. Most of the incentives would begin January 1, 2004 and end December 31, 2013.

"The Georgia Avenue area needs opportunities for renewal and economic growth," stated Catania. He continued, "This legislation would encourage new businesses to come to Georgia Avenue and encourage existing businesses to expand and make capital improvements."

The "Georgia Avenue Investment Now Amendment Act of 2003" provides targeted incentives to businesses operating on Georgia Avenue within the boundaries of 1 block east and 1 block west of Georgia Avenue between 7th Street, N.W., and the District of Columbia-Maryland border. This area will be known as the GAIN district. Qualified GAIN businesses are defined as entities conducting business within the GAIN district, but exclude a business selling beer, wine, liquor, or spirits for off-premises consumption.

Below is a summary of the incentives included in the bill:

INCOME TAX ABATEMENT Qualified GAIN businesses that are incorporated will not be subject to the income tax for a ten-year period beginning January 1, 2004 and ending December 31, 2013. Qualified GAIN businesses that are unincorporated will not be subject to the income tax effective January 1, 2004.

REAL PROPERTY TAX ABATEMENT Qualified GAIN businesses will receive real property tax abatements for real property tax increases attributable to capital improvements made after January 1, 2004 until December 31, 2013. The abatement will be revoked if the business ceases to occupy the property.

PERSONAL PROPERTY TAX ABATEMENT Qualified GAIN businesses will be exempt from personal property taxes on items purchased on or after January 1, 2004 for a ten-year period ending December 31, 2013.

SALES TAX ABATEMENT Qualified GAIN businesses will not be subject to sales tax for a ten-year period beginning January 1, 2004 and ending December 31, 2013.

After introduction, the Act was referred to the Committee on Finance and Revenue, chaired by Councilmember Jack Evans (Ward 2).

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[NOTE: Copies of Bill 15-507, the "Georgia Avenue Investment Now Amendment Act of 2003" can be obtained by contacting the Legislative Services office at 202.724.8050 or by visiting our Web site at http://www.dccouncil.washington.dc.us/lims/BillRecord.asp?billid=checked.doc.