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The economic and fiscal impacts of the qualified target industry tax incentive program

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Title:
The economic and fiscal impacts of the qualified target industry tax incentive program
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English
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University of South Florida -- Center for Economic Development Research
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Center for Economic Development Research
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Tampa, Fla
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Tax incentives -- Florida -- Hillsborough County   ( lcsh )
Economic conditions -- Hillsborough County (Fla.)   ( lcsh )
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non-fiction   ( marcgt )

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Abstract:
This study quantifies the economic and fiscal impacts of active qualified target industry tax incentive program participants to Hillsborough County in 2005.
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an analysis performed by Center for Economic Development Research, College of Business Administration, University of South Florida.
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Title from PDF of title page (viewed Aug. 4, 2009).
General Note:
"August 2006."

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oclc - 429047895
usfldc doi - C63-00094
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The Economic and Fiscal Impacts of the Qualified Target Industry Tax Incentive Program An Analysis Performed by CENTER FOR ECONOMIC DEVELOPMENT RESEARCH College of Business Administration 1101 Channelside Dr., 2 nd Floor N., Tampa, Florida 33602 Office: (813) 905-5854 or Fax: (813) 905-5856 August 2006

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Preface This study was commissioned by the Hillsborough County Economic Development Department and performed by the Center for Economic Development Research, College of Business Administration, University of South Florida. The purpose of the study is to quantify the economic and fiscal impacts of active Qualified Target Industry tax incentive program participants to Hillsborough County in 2005. The Center for Economic Development Research provides information and conducts research on issues related to economic growth and development in the Nation, in the state of Florida, and particularly in the central Florida region. The Center serves the faculty, staff, and students of the College of Business Administration, the University, and individuals and organizations in the Tampa Bay region and statewide. Activities of the Center for Economic Development Research are designed to further the objectives of the University and specifically the objectives of the College of Business Administration. Robert Forsythe, Dean, College of Business Administration (COBA), USF Dennis G. Colie, Director, Center for Economic Development Research (CEDR), COBA, USF, Economist and Principal Investigator Alexander A. McPherson, Research Associate, CEDR, COBA, USF i

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Table of Contents Preface .................................................................................................................................i Table of Contents ................................................................................................................ii EXECUTIVE SUMMARY ...............................................................................................iii I. Introduction.............................................................................................................1 II. Method of Analysis.................................................................................................3 III. Economic and Fiscal Impacts of QTI Participants in 2005....................................5 IV. Conclusion............................................................................................................12 Appendix A Regional Economic Development Policy Analysis ...................................14 Appendix B Fiscal Revenue and Expenditure Categories..............................................16 A ppendix C Economic and Fiscal Impacts of QTI Program Participants......................21 ii

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EXECUTIVE SUMMARY The purpose of this study is to estimate the economic and fiscal impacts of active Qualified Target Industry (QTI) tax incentive program participants to Hillsborough County in FY 2005. We report economic impact in terms of employment, output, and wage and salary disbursements. We report fiscal impact by components of local government revenue and expenditures and State government revenue and expenditures. We also measure the direct property tax impact of the QTI program in FY 2005. The property tax impact is the amount of ad valorem or tangible property tax paid per dollar of tax incentive rebated to a firm for job creation. In FY 2005, six of the 13 companies in the QTI program make their primary business activity in the credit intermediation subsector within the Finance and Insurance industry sector of the economy. The number of jobs created by a QTI program participant ranges from 1,330 to 20. The average annual wage for a QTI-incentivized job ranges from a high of $75,000 to a low of $27,400. In total, the 13 companies created 5,314 jobs with a payroll slightly over $19.8 million. The average wage for all QTIincentivized jobs is $36,662. As the affects of the QTI-incentivized jobs ripple through Hillsborough Countys economy, there is added economic activity. The total economic impact is over $2.9 billion in increased output in Hillsborough County. The 5,314 QTI-incentivized jobs generate another 7,630 jobs, or an approximate 144% increase in jobs beyond the directly incentivized jobs. The annual payroll for these jobs totals over $453 million for an average annual wage of $35,014. In the case of each of the 13 companies active in the QTI program, the net fiscal impact on both local government and State government is positive. And, there is a reduction in welfare-related expenditures at the local and State level due to the QTI tax incentive program as more people have jobs. The average reduction is $192,070 per firm at the local level and $1,387,401 per firm for the State. The property tax impact is measuered by a ratio, which when greater than one indicates that the increase in ad valorem and tangible property tax resulting from a firms business location in the County is more than the Countys QTI tax refund. All projects had a ratio greater than one. Five of the twelve ratios were greater than 13. The ratios ranged from a high of 29.80 to a low of 1.06. iii

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I. Introduction. The purpose of this study is to estimate the economic and fiscal impacts of active Qualified Target Industry (QTI) tax incentive program participants to Hillsborough County in Fiscal Year (FY) 2005. FY 2005 includes portions of calendar years 2004 and 2005. The latest public entity fiscal data available for governmental units within the study area is FY 2003-2004. Active QTI program participants include firms that entered the program prior to FY 2005 as well as those firms participating for the first time in FY 2005. However, this study only analyzes QTI impacts for FY 2005. The QTI Tax Refund Program is available to Florida communities to encourage the expansion of existing businesses or the location of new-to-Florida businesses. The program provides tax refunds to approved applicants of $3,000 per new job created ($6,000 in an Enterprise Zone or rural county). During its history, the QTI program has required a wage of at least 115% of the statewide, county, or metropolitan area average wage. A company that pays an average of at least 150% of area wages receives an additional tax refund of $1,000 per job. And, a company that pays an average of at least 200% of area wages receives an additional tax refund of $2,000 per job. The QTI program is authorized by s. 288.106 Florida Statutes. The QTI program requires financial participation by each affected community. We describe the requirements for fiscal cost sharing below. We base this study on data provided by the Hillsborough County Economic Development Department (HCEDD). The data was provided in spreadsheet form, and contained the name of each active QTI participant and the following information for each firm: the Governors Office of Trade, Tourism, and Economic Development (OTTED) Contract number, Hillsborough County Warrant number and date of issue, the amounts of approved tax refund from each of two Hillsborough County fund accounts, the Total Tax refund expenditure, the number of added jobs, and the annual payroll for the added jobs. 1 We used the state of Florida EQUI database to look up the North American Industry Classification System (NAICS) industry code and physical address of each firm. 2 We then used this industry code to model the economic and fiscal impacts of each firm. We obtained a list of property locations occupied by QTI participants from HCEDD, and used the name, physical address, or the folio number for each property location to look up real and tangible property tax records at the Hillsborough County Property Appraisers website. Through this action, we obtained direct ad valorem and tangible property tax amounts attributable to each firms presence in the region. Economic impact analysis includes a direct effect as well as the indirect effect. When jobs are created in an industry, these jobs motivate the creation of additional jobs 1 Due to confidentiality of QTI-participant data, this report refers to each participant by a Firm Number. 2 The North American Industry Classification System (NAICS) groups establishments into industries based on the activities in which they are prim arily engaged. The system uses a hierarchical structure that progresses from individual industries (5-digit) to industry groups (4-digit) to industry subsectors (3-digit) to industry sectors (2-digit). 1

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in related industries. This phenomenon of job creation, with concomitant increased levels of income and production, is called the multiplier or ripple effect. For this analysis, we estimate the phenomenon of economic contribution, as it ripples through the economy, using the REMI TM Policy Insight regional economic impact model. We describe the model in Appendix A. Fiscal impact is the effect on government revenues and expenditures as a result of an economic stimulus. When a firm expands its operations in a region, or moves in to start a new operation, it has an effect on government services provided in the region. The costs of public services are financed through a variety of revenue sources, including ad valorem real property taxation, sales taxes, and licenses. An explanation of fiscal revenue and expenditure categories is in Appendix B Each affected community is required to financially participate in a QTI tax refund. The state of Florida commits an amount equal to 80% of the total tax refund. The remaining 20% of the total tax refund amount must be committed by the affected community. In Hillsborough County, if a QTI program participant is located within one of the incorporated cities of Tampa, Temple Terrace, or Plant City, the local portion of the tax refund is shared between the county and the city, with each contributing half of the local requirement. When a QTI program participant is located in an unincorporated area of the county, Hillsborough County is solely responsible for committing the entire local tax refund requirement. This sharing of the local financial responsibility provides a means for distributing the program cost among the areas most affected by the firm. 2

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II. Method of Analysis. We measure the economic impact of QTI program participants in Hillsborough County for Fiscal Year (FY) 2005 based on a firm s direct and indirect effects. We use the Counter-factual Approach for estimating the indirect effects. That is, because the firms that we analyze are participating in Hillsborough Countys economy during FY 2005, we virtually remove from the model the number of their jobs, that are subject to the QTI incentive. Additionally, we compare the average compensation rate for these jobs to the REMI models compensation rate for a job in a firms industry subsector (3-digit NAICS). Then we apply an adjustment fact or, measured in employee equivalents, to apply the appropriate change in total industry compensation when a firms average compensation rate differs from the models compensation rate. An underlying assumption of our approach is that when a firms employment is removed from the Countys baseline economy, its market share also leaves the County. 3 We report economic impact in terms of employment, output, and wage and salary disbursements. Employment refers to jobs (not necessarily workers, as a worker may hold more than one job), output is defined as sales adjusted for inventory changes, and wage and salary disbursements are monies paid to workers. These three measurements are interrelated descriptors of the same economic impact, much as mass, volume and density each can describe a solid. We also measure the fiscal impact of QTI program participants in Hillsborough County for FY 2005. Fiscal impact refers to changes in local and State tax revenues and expenditures due to the (virtual) removal of the jobs that are subject to a QTI incentive. Local tax revenues and expenditures are consolidated estimates for Hillsborough County government, the School Board of Hillsborough County (SBHC), as well as the cities of Tampa, Temple Terrace and Plant City. In order to perform the analysis of fiscal impact, we calibrated the REMI model based on publicly available data. We obtained revenue and expenditure data for the county and each municipality from the State of Floridas Department of Financial Services (DFS); the school board data was acquired from financial statements published at the SBHC website. Each year, DFS publishes a database of detailed revenue and expense data for each public entity in Florida. The source of revenue and expenditure data for calibration of the model for the county and incorporated municipalities in Hillsborough County is DFS detailed database for FY 2004, which began October 1, 2003 and ended September 30, 2004. The source of revenue and expenditure data for calibration of the model for the SBHC is the school boards Consolidated Annual Financial Report (CAFR) for FY 2004, which began July 1, 2003 and ended June 30, 2004. We also measure the direct property tax impact of the QTI program in FY 2005. 3 Alternatively, a firms market share could be redistributed to another active firm(s) in Hillsborough County in the same industry subsector. With this alternative assumption, the economic impact of a firms removal from the economy is lessened. 3

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The property tax impact is the amount of ad valorem or tangible property tax, which is directly attributable to a firms doing business in the county, per dollar of tax incentive provided. When a firm enters a region, its operations require commercial or industrial space. The amount of property tax collected is based on the taxable value of the property. In the case of a firm that owns the property and improvements, the amount of ad valorem property tax collected is obtained from a search of property tax records. However, in the case of a firm leasing an existing property, the property owner pays the ad valorem tax. In this case, the QTI participant may make leasehold improvements, but the property owner pays any ad valorem tax associated with an increase in property value attributable to these improvements. In all cases, items such as furniture, fixtures, and equipment used by the firm in operation of its business are taxed as tangible personal property. Tangible Personal Property Tax is an ad valorem assessment against these items. Tangible Personal Property Tax amounts are determined by a property records search. For this analysis, we obtained folio numbers from HCEDD of real property owned by QTI participants and tangible personal property for most firms. We searched the Hillsborough County Property Appraisers website using the firm name, physical address, or these folio numbers to determine the amount of Proposed Property Tax that was to be owed by each firm based on the 2005 Truth in Millage (TRIM) notice for each of the folio numbers provided. The total of real property tax and tangible personal property tax is the direct amount of property tax paid by each firm. 4

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III. Economic and Fiscal Impacts of QTI Participants in 2005. In this section, we summarize the economic and fiscal impacts of the thirteen QTI participants in FY 2005. Economic impact includes the direct effect of the jobs created to satisfy the QTI program agreement as well as the indirect effects as the increased economic activity ripples through the Hillsborough County economy. Fiscal impact is the increase (or decrease) in local and State government revenues and expenditures as a result of the total increase in economic activity. Detailed analysis for each firm is at Appendix C Table 1 lists the direct economic impacts of QTI program participants in FY 2005. The direct impacts are the annual number of jobs and average wage that each participating company has agreed to establish in order to gain a tax incentive. Annual payroll is the number of jobs times the average wage. We also include each companys NAICS industry subsector in the table. Six of the 13 companies in the QTI program make their primary business activity in the credit intermediation subsector within the Finance and Insurance industry sector of the economy. The average wage for a QTI participant in FY 2005 ranges from a high of $75,000 to a low of $27,400. A the high end of the range, Firm 13, a water transportation company, created 20 jobs with average annual pay of $75,000 or an annual payroll totaling $1,500,000. At the low end of the range, Firm 8, a credit intermediation company, created 950 jobs with average annual pay of $27,400 or an annual payroll totaling $26,030,000. Among the QTI participants in FY 2005, Firm 11, another credit intermediation company, created the most jobs, 1,330, with the largest annual payroll of $43,025,500, although its average wage is relatively low at $32,350 per worker. The 13 QTI participants created a total of 5,314 jobs with a payroll slightly over $19.8 million. The average wage for all QTI-incentivized jobs is $36,662. 5

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AnnualAnnualAverage FirmIndustryJobsPayrollWage Firm 13NAICS 48320$1,500,000$75,000 Firm 7NAICS 53133$2,070,882$62,754 Firm 3NAICS 522392$22,465,520$57,310 Firm 5NAICS 511335$15,767,110$47,066 Firm 2NAICS 522769$34,112,071$44,359 Firm 6NAICS 483200$8,521,800$42,609 Firm 1NAICS 52275$2,676,825$35,691 Firm 10NAICS 52460$2,141,460$35,691 Firm 9NAICS 56150$1,727,200$34,544 Firm 4NAICS 312570$18,620,190$32,667 Firm 11NAICS 5221,330$43,025,500$32,350 Firm 12NAICS 522530$16,165,000$30,500 Firm 8NAICS 522950$26,030,000$27,400 Total 5,314$194,823,558$36,662 Industries NAICS 312:Beverage and Tobacco Product Manufacturing NAICS 483:Water Transportation NAICS 511:Publishing Industries (except Internet) NAICS 522:Credit Intermediation & Related Activities NAICS 524:Insurance Carriers and Related Activities NAICS 531:Real Estate NAICS 561:Administrative and Support Services Table 1 Direct Economic Impacts Direct Impact 6

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As the affects of the direct economic impacts of the QTI program participants ripple through Hillsborough Countys economy, additional jobs are created. In Table 2 we list the total economic impacts in FY 2005. The total impacts are the sum of the direct impacts and the additional jobs (indirect impacts) due to the ripple effect. In addition to the annual number of jobs, average wage, and annual payroll, we report in Table 2 the total output attributable to each firm participating in the program. Firm 11 had the largest impact, a total output of $652,800,000, on the Countys economy. The ripple effect increased Firm 11s 1,330 direct jobs to approximately 3,000 total jobs with an annual payroll of $38,760,000. Firm 9, an administrative and support services firm, had the least impact, about $5,370,000 of total output in Hillsborough County. The ripple effect of the QTI participants results in over $2.9 billion of increased output in Hillsborough County. The 5,314 QTI-incentivized jobs create another 7,630 jobs. The total payroll for all jobs is over $453 million, for an average annual wage of $35,014. AnnualAnnualAverage Firm OutputJobsPayrollWage Firm 11$652,800,0003,003.0$99,850,000$33,250 Firm 4$546,284,8001,778.0$62,270,000$35,022 Firm 8$461,856,0002,107.0$66,350,000$31,490 Firm 2$386,131,2001,812.0$67,510,000$37,257 Firm 12$259,270,4001,189.0$38,760,000$32,599 Firm 3$201,606,400964.9$39,790,000$41,237 Firm 6$165,158,400800.5$29,880,000$37,327 Firm 5$140,569,600742.7$28,560,000$38,454 Firm 1$37,068,160171.3$5,896,000$34,419 Firm 7$23,304,96096.0$3,950,000$41,142 Firm 10$17,777,920124.7$4,475,000$35,886 Firm 13$12,914,56085.0$3,647,000$42,896 Firm 9 $5,370,36870.5$2,300,000$32,624 Total$2,910,112,76812,944.6$453,238,000$35,014 Table 2 Total Economic Impacts Total Ecomomic Impact 7

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Table 3 reports the change in local government revenue, expenditure, and the net fiscal impact of each QTI participant. The components of local government revenue and expenditures are described in Appendix B. Local tax revenues and expenditures are consolidated estimates for Hillsborough County government and the Hillsborough County School Board as well as the cities of Tampa, Temple Terrace and Plant City. In each case, an increase in local government revenues and expenditures results from the firms business operations in the County. In all cases, the net fiscal impact is positive. FirmIndustryRevenueExpendituresNet Firm 1NAICS 522$354,565$102,232$252,333 Firm 2NAICS 522$3,999,656$1,051,127$2,948,529 Firm 3NAICS 522$2,318,863$539,861$1,779,002 Firm 4NAICS 312$4,603,693$941,724$3,661,968 Firm 5NAICS 511$1,803,923$431,967$1,371,957 Firm 6NAICS 483$1,864,150$454,149$1,410,001 Firm 7NAICS 531$282,219$55,956$226,263 Firm 8NAICS 522$4,049,242$1,284,901$2,764,342 Firm 9NAICS 561$122,083$46,089$75,994 Firm 10NAICS 524$240,470$65,539$174,931 Firm 11NAICS 522$6,034,604$1,806,088$4,228,515 Firm 12NAICS 522$2,350,289$717,595$1,632,694 Firm 13NAICS 483$220,513$45,426$175,087 Table 3 Local Fiscal Impacts Local Fiscal Impact 8

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Table 4 reports the change in State revenue, expenditures, and the net fiscal impact of each QTI participant. The components of State governments revenue and expenditures are described in Appendix B. In all cases, State revenue increases and State expenditures decrease as a result of the QTI program. Consequently, the net State fiscal impact is always positive. FirmIndustryRevenueExpendituresNet Firm 1NAICS 522$430,619-$214,477$645,096 Firm 2NAICS 522$4,808,934-$2,220,832$7,029,767 Firm 3NAICS 522$2,754,978-$1,147,191$3,902,169 Firm 4NAICS 312$7,544,536-$2,389,705$9,934,242 Firm 5NAICS 511$2,642,358-$919,831$3,562,190 Firm 6NAICS 483$2,401,780-$976,928$3,378,708 Firm 7NAICS 531$381,681-$89,478$471,160 Firm 8NAICS 522$5,290,527-$2,698,871$7,989,397 Firm 9NAICS 561$134,989-$71,923$206,912 Firm 10NAICS 524$268,271-$165,891$434,162 Firm 11NAICS 522$7,803,596-$3,793,913$11,597,509 Firm 12NAICS 522$3,049,746-$1,510,967$4,560,713 Firm 13NAICS 483$277,347-$99,559$376,906 Table 4 State Fiscal Impacts State Fiscal Impact In the case of each of the 13 companies active in the QTI program, the net fiscal impact on both local government and State government is positive. And, as reported in the detailed analysis for each firm in Appendix C, there is a reduction in welfare-related expenditures at the local and State levels. The average reduction per firm is $192,070 at the local level and $1,387,401 for the State. 9

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In Table 5 we provide a comparison of the amount of QTI tax incentive paid to a firm by Hillsborough County in FY 2005 to the increase in ad valorem or tangible property tax revenue generated by each firm. We received from HCEDD tax folio numbers, which are needed to determine the amount of tax paid, for nine of the 13 active QTI projects in FY 2005. We searched the Hillsborough County Property Appraisers website for folio numbers for the other four firms and were able to obtain information for three of the four firms. Firm 9 has apparently not been in existence long enough to be established in the appraisers database, because we did not find any information related to this firm. Similarly, Firm 7 has apparently been in business only slightly longer, as this firm is established in the appraisers database with a tangible property folio number, but has not yet incurred any tax obligation. And, in the case of Firms 2 and 3, the same company had two active QTI projects at the same location, so we added the tax paid and QTI refunds for both projects for this analysis. Thus, Table 5 shows the result of our analyses for the eleven projects (or ten firms) with established tax obligations, and estimates for the other two firms. In Table 5, the amounts shown in the Direct Property Tax Paid column include ad valorem real property taxes generated by firms that own real property and tangible property taxes generated from furniture, fixtures, and equipment used in the firms operations. For the two firms that do not have data available from the tax appraiser, we used the weighted average tangible property tax obligation per QTI-incentivized job based on the other eleven projects to derive an estimated tangible tax. The County Portion of QTI Refund column includes only the Hillsborough County portion of the QTI tax refund. The DPTP to QTI Refund is the ratio of Direct Property Tax Paid to the amount of QTI Refund. This ratio is the number of times the QTI Refund is recovered by the amount of property tax collected by Hillsborough County. A ratio greater than one indicates that the increase in ad valorem and tangible property tax resulting from a firms business location in the County is more than the Countys QTI tax refund. All projects had a ratio greater than one. Five of the twelve ratios were greater than 13. The ratios ranged from a high of 29.80 for Firm 12 to a low of 1.06 for Firm 4. 10

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DPTP Direct County Property TaxPortion ofDPTP to Firm PaidQTI RefundQTI Refund Firm 123,546.96 $ 11,250$ 2.09Firm 2 and 31,254,901.64 $ 251,800 $ 4.98Firm 491,034.26 $ 85,500$ 1.06Firm 571,156.02 $ 37,516$ 1.90Firm 6279,517.02 $ 11,200$ 24.96Firm 7*9,149.91 $ 4,125$ 2.22Firm 888,299.46 $ 15,263$ 5.79Firm 9*13,863.50 $ 3,750$ 3.70Firm 10121,922.98 $ 9,000$ 13.55Firm 11775,324.32 $ 31,911$ 24.30Firm 121,184,687.10 $ 39,750 $ 29.80Firm 1312,840.09 $ 500$ 25.68 DPTP estimated based on Weighted-Average DPTP per QTI-Incentivized Job for other projects Table 5 Local Property Tax Revenue Ratios 11

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IV. Conclusion. The purpose of this study is to estimate the economic and fiscal impacts of active Qualified Target Industry tax incentive program participants to Hillsborough County in FY 2005. An economic impact refers to a change in production, distribution, or consumption in a region. Fiscal impact is the effect on government revenues and expenditures as a result of an economic stimulus. In this study, the economic stimulus is the creation of jobs for which firms receive a tax refund. We report economic impact in terms of employment, output, and wage and salary disbursements. We report fiscal impact by components of local government revenue and expenditures and State government revenue and expenditures. For both State and local governments, we summarize the fiscal impact in terms of the net change in revenue and expenditures. We also measure the direct property tax impact of the QTI program in FY 2005. The property tax impact is the amount of ad valorem or tangible property tax paid per dollar of tax incentive rebated to a firm for job creation. In FY 2005, six of the 13 companies in the QTI program make their primary business activity in the credit intermediation subsector within the Finance and Insurance industry sector of the economy. The number of jobs created by QTI program participant ranges from 1,330 to 20. The average annual wage for a QTI-incentivized job ranges from a high of $75,000 to a low of $27,400. In total, the 13 companies created 5,314 jobs with a payroll slightly over $19.8 million. The average wage for all QTI-incentivized jobs is $36,662. As the affects of the QTI-incentivized jobs ripple through Hillsborough Countys economy, there is added economic activity. The total economic impact is over $2.9 billion in increased output in Hillsborough County. The 5,314 QTI-incentivized jobs generate another 7,630 jobs, or an approximate 144% increase in jobs beyond the directly incentivized jobs. The annual payroll for these jobs totals over $453 million for an average annual wage of $35,014. In the case of each of the 13 companies active in the QTI program, the net fiscal impact on both local government and State government is positive. In particular, there is a reduction in welfare-related expenditures at the local and State level for each company due to the increased employment attributable to the QTI-incentivized jobs and the ripple effect to employment in other firms. The average welfare expenditure reduction is $192,070 for Hillsborough County and $1,387,401 for the State of Florida. We also compared of the amount of QTI tax incentive paid to a firm by Hillsborough County in FY 2005 to the increase in ad valorem and tangible property tax revenue generated by each firm. The ratio of Direct Property Tax Paid to the amount of 12

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QTI Refund is the number of times the QTI Refund is recovered by the amount of property tax collected by Hillsborough County. A ra tio greater than one indicates that the increase in ad valorem and tangible property tax resulting from a firms business location in the County is more than the Countys QTI tax refund. All projects had a ratio greater than one. Five of the twelve ratios were greater than thirteen. The ratios ranged from a high of 29.80 to a low of 1.06. 13

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Appendix A Regional Economic Development Policy Analysis The Center for Economic Development Research (CEDR), College of Business Administration, University of South Florida (USF), uses the REMI Policy Insight TM model to estimate economic and demographic effects that policy initiatives or external events may cause on a regional economy. Data the last available historical year is 2003 for each of USFs seven county economic development region, Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk and Sarasota; as well as the counties of Brevard, Lake, Orange, Osceola, Seminole and Volusia; and a consolidation of the remaining 54 Florida counties are available. The REMI software is managed by CEDR and available to the USF community for research and teaching purposes. The following article briefly explains the policy insight model. Founded in 1980, Regional Economic Models, Inc. (REMI) constructs models that reveal the economic and demographic effects that policy initiatives or external events may cause on a local economy. REMI TM Policy Insight model users include national, regional, state, and city governments, as well as universities, nonprofit organizations, public utilities and private consulting firms. REMI TM users in Florida include the State of Florida (Legislature, Governors Office, Agency for Workforce Innovation), Tampa Bay Regional Planning Council, the Univers ity of South Florida, Florida State University, City of Jacksonville, Floridas Space Coast Economic Development Commission, and the Northeast Florida Regional Planning Council. REMI TM is a dynamic model that predicts how changes in an economy will occur on a year-by-year basis. The model is sensitive to a wide range of policy and project alternatives as well as interactions between regional economies and the national economy. The model uses data from the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Department of Energy, the Census Bureau and other public sources. The models dynamic property means that it forecasts not only what will happen but also when it will happen. This results in long-term predictions that have general equilibrium properties. This means that the long-term properties of general equilibrium models are preserved without sacrificing the accuracy of event timing predictions and without simply taking elasticity estimates from secondary sources. REMI TM is a structural model, meaning that it clearly includes cause and effect relationships. The model shares two key underlying assumptions with mainstream economic theory: households maximize utility and producers maximize profits. Because these assumptions make sense to most people, the model can be understood by intelligent lay people as well as trained economists. In the model, businesses produce goods to sell to other firms, consumers, investors, governments and purchasers outside of the region. The output is produced 14

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using labor, capital, fuel and intermediate inputs. The demand for labor, capital and fuel per unit of output depends on their relative costs, because an increase in the price of any one of these inputs leads to substitution away from that input to other inputs. The supply of labor in the model depends on the number of people in the population and the proportion of those people who participate in the labor force. Economic migration affects the population size. People will move into an area if the real after-tax wage rates or the likelihood of being employed increases in a region. Supply and demand for labor in the model determines the wage rates. These wage rates, along with other prices and productivity, determine the cost of doing business for every industry in the model. An increase in the cost of doing business causes either an increase in price or a cut in profits depending on the market for the product. In either case, an increase in cost would decrease the share of the local and US market supplied by local firms. This market share combined with the demand described above determines the amount of local output. There are also many other feedback loops in the model such as the feedback from changes in wages and employment to income and consumption, the feedback of economic expansion to investment, and the feedback of population to government spending. REMI TM includes a fiscal impact analysis module, which predicts the changes in tax revenues and public sector spending that result from a change in an economy. This module enhances an understanding of an impact on state and local governments budgets. The model brings together the fundamental economic elements mentioned in the previous two paragraphs to determine a baseline forecast for each year The model includes all the inter-industry relationships that are in an input-output model, like IMPLAN Professional TM and goes beyond the input-output model by including added relationships with population, labor supply, wages, prices, profits, and market shares. 15

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Appendix B Fiscal Revenue and Expenditure Categories The United States Census Bureau performs a Census of Governments every five years. The latest census is based on governmental fiscal years ending in 2002. This census is a compilation of commonly reported fiscal revenue and expenditure categories for each incorporated city and unincorporated governmental district in the country. The Government Finance and Employment Classification Manual, found at http://www.census.gov/govs/www/class.html, describes in detail all component fiscal revenue and expenditure item categories collected by the Census of Governments. In order to determine fiscal impact, REMI uses a summary list of revenue and expenditure categories, which is compiled by the census bureau from the component detailed items. The summary list of categories is described below, based on a generalized description of each detailed item. In addition to the Census of Governments, each year all municipalities in Florida file certified and audited financial documents with the State of Florida, Department of Financial Services. Hillsborough County and the three incorporated cities in the county (Tampa, Temple Terrace, and Plant City) are the major public entities wholly contained within Hillsborough County that are required to forward these types of documents to the State. Also, every other public entity in the State is required to submit similar documents. Some examples of other public entities include aviation authorities, water management districts, fire districts, and community deve lopment districts. The financial documents of all public entities are ultimately compiled into a single database and made available by the State for download from its website at: http://www.fldfs.com/localgov/DownLoads.html The latest data available from the State website is for governmental fiscal years ending in 2004. Revenue and expenditure item codes used in each years database are depicted in a Code Information database table. The item code information table contains fields for account code, description, specific category and general category for each revenue or expenditure item code. Contents of the table can be associated with a similarly-named or similarly-described category from REMIs summary list of revenue and expenditure categories. A separate public entity in each county of Florida is the school board. Financial statements for each school board in Florida must be reviewed and approved by the Florida Department of Education. The School District of Hillsborough County (SDHC) publishes its Consolidated Annual Financial Report (CAFR) each year on its website at: http://apps.sdhc.k12.fl.us/BUSDIV/Accounting/CAFR/index.htm The latest data available from the SDHC website is for the fiscal year ending in 2005. Each CAFR contains a Statement of Revenues, Expenditures, and Changes in Fund Balances. This statement lists amounts for each revenue and expenditure category used by the school board. Revenue amounts listed from local sources include ad valorem taxes (property tax), local sales tax (general sales tax), food services (education charge), interest income (other revenue), and other (other revenue). Federal and state intergovernmental grants 16

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and transfers provide the remainder of the school board revenue. School board expenditure amounts include items for interest on debt, pupil transportation, instructional services and instructional support services together with capital outlays (elementary and secondary education expenditures), and school and general administration, maintenance, food services, community services, and principal debt retirement (administration and unallocable expenses). These school board revenue and expense items can be associated with a similar category from REMIs summary list of revenue and expenditure categories. Revenue Items Federal Intergovernmental revenue includes Federal grants, payments, and contributions obtained for specific purposes such as general government, public safety, physical and economic environment, transportation, human services, culture/recreation, and court-related. Federal payments may also provide relief for hurricane and homeland security municipal costs. State Intergovernmental revenue to local government includes state grants and state shared revenues for specific purposes such as general government, public safety, physical and economic environment, transportation, human services, culture/recreation, and court-related activity. Local Intergovernmental revenue to state government includes local grants, payments, and transfers made between municipalities, with the state serving as an unbiased intermediary. Revenue in this item serves specific purposes such as general government, public safety, physical and economic environment, transportation, human services, culture/recreation, and transfers among various municipal departments. Property Tax includes only revenue generated by ad valorem taxation. This tax is collected at the county level. The portion of the tax which is collected for property located in an adjoining municipality is distributed to that municipality, and is excluded from the total amount reported by the county. General Sales Tax refers to revenue generated by the tax on total general sales. In Florida, some services and all consumable products except unprepared food staples and prescription medications are taxable under this category. The level of taxation is set by the county government. Sales tax is collected by local businesses, paid to the state, and a portion returned to the municipality of origin. Motor Fuel Sales Tax is the tax collected on fuel sales, the level of which varies from one municipality to another. This tax is collected by local businesses, paid to the state, and a portion returned to the municipality of origin. Alcoholic Beverage Sales Tax is the tax collected on sales of alcoholic beverages. 17

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Tobacco Sales Tax is the tax collected on sales of tobacco products. Public Utility Sales Tax is the tax collected on sales by public utilities. These entities include both privatelyand publicly-owned utilities, such as public passenger and freight transportation companies, telephone, telegraph, and light and power. The tax is measured by gross receipts, gross earnings, or units of service sold, either as a direct tax on consumers or as a percentage of gross receipts of utility. Other Sales Tax includes taxes collected for amusement admissions, taxes imposed on insurance companies based on the level of premiums collected, taxes on parimutuels based on the amounts wagered, and taxes on specific commodities, businesses, or services not reported separately (e.g., on contractors, lodging, lubricating oil, fuels other than motor fuel, motor vehicles, meals, soft drinks, margarine, etc.). Individual Income Tax is the tax collected in some states on individuals measured by net income and taxes on special types of income (e.g., interest, dividends, income from intangible property, etc.). In Florida, there is no individual income tax imposed on net income. Corporate Income Tax is the tax imposed on corporations and unincorporated businesses measured by net income. Motor Vehicle License tax is imposed on owners or operators of motor vehicles for the right to use public highways, and include items such as fees for title registration, license plates, vehicle inspection, vehicle mileage and weight taxes on motor carriers, highway use taxes, and off-highway fees. This item also includes charges for licenses for the privilege of driving motor vehicles, both commercial and private. Other Tax includes death and gift taxes, documentary and stock transfer taxes, severance taxes, and other obscure taxes not elsewhere included. Education Charges include amounts charged for school lunches, tuition and transportation, and revenues from athletic contests, sale or rental of textbooks, and student activity funds. With regard to higher education, this item includes gross receipts from sales and charges by dormitories, cafeterias, athletic contests, lunchrooms, student activities, bookstores, and similar commercial activities, tuition, laboratory fees, and other charges of higher education facilities other than auxiliary enterprises. For local governments, the item includes all charges related to institutions of higher education. Also, the item includes fees of state schools for blind, deaf, and handicapped; and tuition and fees of state vocational-technical schools which award certificates equal to less than two years of college. Other Charges and Revenues is a broad fiscal revenue category that includes a variety of revenue items not classified as eith er a form of intergovernmental transfer or some specific form of sales or licensing tax. The revenue category includes items such as 18

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building permits, occupational and other licenses, permits, and fees, recording fees, and charges for services by the various municipal departments. Also, the revenue category includes court related revenues such as fines and forfeitures, as well as interest earnings, rents, revenue from the disposition of assets, debt proceeds, and other non-classified grants and donations. In terms of total fiscal revenues, Other Charges and Revenues comprises about one-half of total revenues exclusive of schools, and about one-third of total revenues including schools. Utility and Liquor Store Revenue refers to revenues generated by utility enterprise operations and state-run liquor stores. Unemployment Compensation includes contributions collected for funds set up for employee unemployment insurance. Employee Retirement includes contributions to, payments from, and investment returns to retirement funds for government employees. Expenditure Items Intergovernmental includes any transfer of funds between municipal entities. With regard to local government expenditures, this category generally includes transfers of shared amounts between entities. Higher Education includes expenditures for operations, construction, equipment, and other capital outlays related to education beyond the level of secondary. Elementary and Secondary Education, Libraries includes expenditures for operations, construction, equipment, and other capital outlays related to formative education up to the secondary level, as well as for libraries. Welfare includes expenditures for current operations related to Federal Categorical Assistance Programs, cash assistance, vendor payments for medical care and other purposes, as well as current operations, construction, equipment, and other capital outlays for welfare institutions and other unclassified welfare related items. Welfare generally represents a small portion of total expenditure for cities and counties, but can be a significant expenditure in a region by the State of Florida. In 2004, this item represented about 3.3% of total local fiscal expenditures in Hillsborough County, while it represented about 18.5% of total State expenditures in Hillsborough County. Health refers to expenditures by governmental entities for current operations, construction, equipment, and other capital outlays for hospitals and health service centers, whether publicly or privately owned. Transportation expenditures include current operation costs, construction, equipment, and other capital outlays for regular or toll highways and sea or inland port 19

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facilities. Police, Fire, and Correction expenditures include current operation costs, construction, equipment, and other capital outlays for police protection, fire protection, correction facilities, and corrections. Natural Resources, Parks, Housing includes expenditures for operations, construction, equipment, and other capital outlays related to housing and community development, the agricultural, fish and game, forestry, and other aspects of natural resource sustainability, parking facilities, and park and recreation facilities. Sewerage, Solid Waste includes expenditures for operations, construction, equipment, and other capital outlays related to sewerage and solid waste management. Administration and Unallocable expenditures include operations, construction, equipment, and other capital outlays related to miscellaneous commercial activities, social insurance and financial administration, services by judicial, legal, legislative, or central staff, public buildings, and protective regulatory inspections. Interest on Debt refers to interest expense. Utilities, Transit expenditures include operations, construction, equipment, and other capital outlays related to air transportation, private transit subsidies, and water, electric, gas, and transit utilities. Insurance Trusts is a fiscal expenditure item that includes current operating expenditures for benefits and other payments, construction and other capital outlay, and equipment expenditures for veterans bonuses and other veterans services. The item can be generally construed as municipal expenditures to meet governmental obligations to veterans preference mandates. Amounts included in this item are typically a very small part of the overall fiscal landscape. 20

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Appendix C Economic and Fiscal Impacts of QTI Program Participants Tables C1 through C13 provide details of the economic and fiscal impacts for each QTI program participant. In all tables in this appendix, Panel A shows the direct economic impact in terms of annual jobs, annual payroll, and average wage meeting the QTI program agreement terms. Panel B provides the total economic impacts associated with this firms business operations in the county in terms of output, annual jobs, annual payroll, and average wage. Panel C depicts the local fiscal impact of the firm on each revenue and expenditure category. Similarly, Panel D depicts the fiscal impact to the State of Florida revenue and expenditure categories. Panel E provides measures of return on public investment. The measure of local return on investment is defined by the ratio of the total increase in ad valorem and tangible property tax revenue to the local share of the firms QTI tax refund. Ratios greater than one indicate a positive effect to the county. Table C1 presents economic and fiscal impacts for Firm 1. In Table C1, Panel A shows the direct effects of the firms operations. The direct 75 QTI-incentivized jobs promote the creation of over 171 total jobs shown in Table C1, Panel B. Workers in these 171 jobs produce output valued at more than $37 million, and are paid almost $6 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:75$2,676,825$35,691 Credit Intermediation & Related Activities AnnualAnnualAverage Output JobsPayrollWage $37,068,160171.3$5,896,000$34,419 Panel B Total Economic Impact Panel A Direct Impact Table C1 FY 2005 QTI Analysis Hillsborough County, Florida Firm 1 21

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In Table C1, Panel C, the local fiscal impact of the firms business operations in Hillsborough County is over $350,000 in local revenues, while there is an increase in expenditures of about $102,000. Table C1, Panel D, reports that the fiscal impact to the State of Florida is an increase in total State revenue of over $430,000, while there is a reduction in State expenditures of over $214,000. Revenue AmountExpenditures Amount Federal Intergovernmental $9,082Intergovernmental $23,516 State Intergovernmental $26,861Higher Education $0 Property Tax $17,822Elementary & Secondary Education; Libraries$33,899 General Sales Tax $24,809Welfare -$37,223 Motor Fuel Sales Tax $7,881Health $3,419 Alcoholic Bev Sales Tax $0Transportation $6,992 Tobacco Sales Tax $0Police, Fire, Correction $17,914 Public Utility Sales Tax $15,626 Natural Resources, Parks, Housing $4,928 Other Sales Tax $28,779Sewerage, Solid Waste $11,060 Individual Income Tax $0 Administration & Unallocable $27,917 Corporate Income Tax $0Interest on Debt $7,274 Motor Vehicle License $0Utilities, Transit $2,535 Other Tax $6,021Insurance Trusts $0 Education Charges $4,512 Other Charges & Rev $207,457 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $5,716 Total Local Revenue $354,565Total Local Expenditures $102,232 Revenue AmountExpenditures Amount Federal Intergovernmental $24,378Intergovernmental $29,169 Local Intergovernmental $632Higher Education $43,667 Property Tax $0Elementary & Secondary Education; Libraries $11 General Sales Tax $168,880Welfare -$239,161 Motor Fuel Sales Tax $27,220Health $5,431 Alcoholic Bev Sales Tax $8,253Transportation $8,953 Tobacco Sales Tax $2,016Police, Fire, Correction $4,587 Public Utility Sales Tax $18,817Natural Resources, Parks, Housing $2,866 Other Sales Tax $12,989Sewerage, Solid Waste $0 Individual Income Tax $0Administration & Unallocable $13,492 Corporate Income Tax $54,245Interest on Debt $1,988 Motor Vehicle License $15,503Utilities, Transit $109 Other Tax $34,115Insurance Trusts -$85,589 Education Charges $31,991 Other Charges & Rev $49,905 Utility&Liquor Store Rev $161 Unemployment Comp. $6,389 Employee Retirement $96 Workers' Comp. $41 Other Ins. Trust Rev $0 Total State Revenue $430,619Total State Expenditures -$214,477 Panel D State Fiscal Impact Table C1 FY 2005 QTI Analysis Hillsborough County, Florida Firm 1 Panel C Local Fiscal Impact 22

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Table C1, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 1 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. However, the firm does pay Tangible Property Tax for material items used in its operation. At this level, the total of direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund, resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not applicable $23,547$11,2502.09 $23,546.96 Tangible Property Tax Table C1 FY 2005 QTI Analysis Hillsborough County, Florida Firm 1 Panel E Property Tax Collected vs QTI Tax Refund 23

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Table C2 presents economic and fiscal impacts for Firm 2. Table C2, Panels A and B, show direct and estimated total impacts for the firm. The direct 769 QTIincentivized jobs promote the creation of over 1,812 total jobs shown in Table C2, Panel B. Workers in these 1,812 jobs produce output valued at more than $386 million, and are paid almost $68 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:769$34,112,071$44,359 Credit Intermediation & Related Activities AnnualAnnualAverage Output JobsPayrollWage $386,131,2001,812.0$67,510,000$37,257 Panel B Total Economic Impact Table C2 FY 2005 QTI Analysis Hillsborough County, Florida Firm 2 Panel A Direct Impact 24

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Table C2, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Almost $4.0 million in annual local revenues are anticipated, while there is an increase in local expenditures of slightly more than $1.0 million per year. Table C2, Panel D, reports that the fiscal impact to the State of Florida is an increase in revenue of over $4.8 million and a decrease in State expenditures of over $2.2 million. Revenue AmountExpenditures Amount Federal Intergovernmental $93,540Intergovernmental $242,136 State Intergovernmental $276,712Higher Education $0 Property Tax $195,043Elementary & Secondary Education; Libraries$349,045 General Sales Tax $274,455Welfare -$384,853 Motor Fuel Sales Tax $91,694Health $35,202 Alcoholic Bev Sales Tax $0Transportation $72,005 Tobacco Sales Tax $0Police, Fire, Correction $184,475 Public Utility Sales Tax $173,189 Natural Resources, Parks, Housing $50,746 Other Sales Tax $318,368Sewerage, Solid Waste $113,886 Individual Income Tax $0 Administration & Unallocable $287,485 Corporate Income Tax $0Interest on Debt $74,898 Motor Vehicle License $0Utilities, Transit $26,101 Other Tax $69,327Insurance Trusts $0 Education Charges $51,957 Other Charges & Rev $2,389,554 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $65,818 Total Local Revenue $3,999,656Total Local Expenditures $1,051,127 Revenue AmountExpenditures Amount Federal Intergovernmental $251,165Intergovernmental $300,413 Local Intergovernmental $6,508Higher Education $450,311 Property Tax $0 Elementary & Secondary Education; Libraries $115 General Sales Tax $1,868,346Welfare -$2,472,660 Motor Fuel Sales Tax $316,829Health $55,999 Alcoholic Bev Sales Tax $96,054Transportation $92,309 Tobacco Sales Tax $22,428Police, Fire, Correction $47,299 Public Utility Sales Tax $208,586 Natural Resources, Parks, Housing $29,549 Other Sales Tax $143,640Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $139,126 Corporate Income Tax $561,838Interest on Debt $20,510 Motor Vehicle License $178,524Utilities, Transit $1,122 Other Tax $392,855Insurance Trusts -$884,925 Education Charges $368,437 Other Charges & Rev $574,663 Utility&Liquor Store Rev $1,854 Unemployment Comp. $73,308 Employee Retirement $1,104 Workers' Comp. $469 Other Ins. Trust Rev $0 Total State Revenue $4,808,934Total State Expenditures -$2,220,832 Firm 2 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C2 FY 2005 QTI Analysis Hillsborough County, Florida 25

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Table C2, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax refund. Firm 2 is the same firm as Firm 3, and is listed as the owner of the commercial facility where the business is physically located. Therefore, Real Property Tax for the property where the business is located is directly attributable to the firm. In addition, the firm pays Tangible Property Tax for material items used in its operations for both firms. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund for both projects, resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: YES Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio $809,076.82 $1,254,902$251,8004.98 Tangible Property Tax $445,824.82 Table C2 FY 2005 QTI Analysis Hillsborough County, Florida Firm 2 and Firm 3 Panel E Property Tax Collected vs QTI Tax Refund 26

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Table C3 presents economic and fiscal impacts for Firm 3. Table C3, Panel A and B show direct and estimated total impacts for the firm. The direct 392 QTI-incentivized jobs promote the creation of almost 965 total jobs shown in Table C3, Panel B. Workers in these 965 jobs produce output valued at more than $201 million, and are paid almost $40 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:392$22,465,520 $57,310 Credit Intermediation & Related Activities AnnualAnnualAverage Output JobsPayrollWage $201,606,400964.9$39,790,000 $41,237 Panel B Total Economic Impact Table C3 FY 2005 QTI Analysis Hillsborough County, Florida Firm 3 Panel A Direct Impact 27

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Table C3, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $2.3 million in annual local revenues are anticipated, while there is an increase in local expenditures of slightly more than $0.5 million per year. Table C2, Panel D, reports that the fiscal impact to the State of Florida is an increase in revenue of over $2.7 million and a decrease in State expenditures of over $1.1 million. Revenue AmountExpenditures Amount Federal Intergovernmental $48,089Intergovernmental $124,556 State Intergovernmental $142,204Higher Education $0 Property Tax $108,346 Elementary & Secondary Education; Libraries $179,447 General Sales Tax $155,336Welfare -$198,531 Motor Fuel Sales Tax $55,209Health $18,099 Alcoholic Bev Sales Tax $0Transportation $37,018 Tobacco Sales Tax $0Police, Fire, Correction $94,864 Public Utility Sales Tax $98,352 Natural Resources, Parks, Housing $26,091 Other Sales Tax $180,166Sewerage, Solid Waste $58,544 Individual Income Tax $0 Administration & Unallocable $147,847 Corporate Income Tax $0Interest on Debt $38,506 Motor Vehicle License $0Utilities, Transit $13,420 Other Tax $41,194Insurance Trusts $0 Education Charges $30,872 Other Charges & Rev $1,419,984 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $39,111 Total Local Revenue $2,318,863Total Local Expenditures $539,861 Revenue AmountExpenditures Amount Federal Intergovernmental $129,071Intergovernmental $154,413 Local Intergovernmental $3,346Higher Education $231,568 Property Tax $0 Elementary & Secondary Education; Libraries $59 General Sales Tax $1,057,806Welfare -$1,275,318 Motor Fuel Sales Tax $190,733Health $28,790 Alcoholic Bev Sales Tax $57,836Transportation $47,463 Tobacco Sales Tax $12,774Police, Fire, Correction $24,326 Public Utility Sales Tax $118,400 Natural Resources, Parks, Housing $15,195 Other Sales Tax $81,290Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $71,553 Corporate Income Tax $290,974Interest on Debt $10,547 Motor Vehicle License $106,088Utilities, Transit $577 Other Tax $233,415Insurance Trusts -$456,365 Education Charges $218,846 Other Charges & Rev $341,453 Utility&Liquor Store Rev $1,102 Unemployment Comp. $43,328 Employee Retirement $656 Workers' Comp. $277 Other Ins. Trust Rev $0 Total State Revenue $2,754,978Total State Expenditures -$1,147,191 Panel D State Fiscal Impact Table C3 FY 2005 QTI Analysis Hillsborough County, Florida Firm 3 Panel C Local Fiscal Impact 28

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Table C3, Panel E, indicates that the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax refund is included in the calculation for Firm 2, above. The direct ad valorem and tangible property tax collected for this firm is a part of the analysis in Table C2, Panel E, above. Owner-Occupied Property: YES Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio -included with Firm 2, see Table C2, Panel E Tangible Property Tax Table C3 FY 2005 QTI Analysis Hillsborough County, Florida Firm 3 Panel E Property Tax Collected vs QTI Tax Refund 29

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Table C4 presents economic and fiscal impacts for Firm 4. Table C4, Panel A and B show direct and estimated total impacts for the firm. The direct 570 QTI-incentivized jobs promote the creation of 1,778 total jobs shown in Table C4, Panel B. Workers in these 1,778 jobs produce output valued at more than $546 million, and are paid almost $62 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 312:570$18,620,190 $32,667 Beverage and Tabacco Product Manufacturing AnnualAnnualAverage Output JobsPayrollWage $546,284,8001,778.0$62,270,000 $35,022 Table C4 FY 2005 QTI Analysis Hillsborough County, Florida Firm 4 Panel B Total Economic Impact Panel A Direct Impact 30

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Table C4, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $4.6 million in annual local revenues are anticipated, while there is an increase in local expenditures of slightly more than $0.9 million per year. Table C2, Panel D, reports that the fiscal impact to the State of Florida is an increase in revenue of over $7.5 million and a decrease in State expenditures of almost $2.4 million. Revenue AmountExpenditures Amount Federal Intergovernmental $87,087Intergovernmental $225,515 State Intergovernmental $257,629Higher Education $0 Property Tax $157,286 Elementary & Secondary Education; Libraries $324,934 General Sales Tax $598,261Welfare -$395,215 Motor Fuel Sales Tax $86,574Health $32,770 Alcoholic Bev Sales Tax $0Transportation $67,029 Tobacco Sales Tax $0Police, Fire, Correction $171,752 Public Utility Sales Tax $288,819 Natural Resources, Parks, Housing $47,247 Other Sales Tax $694,089Sewerage, Solid Waste $105,986 Individual Income Tax $0 Administration & Unallocable $267,683 Corporate Income Tax $0Interest on Debt $69,727 Motor Vehicle License $0Utilities, Transit $24,296 Other Tax $65,490Insurance Trusts $0 Education Charges $49,084 Other Charges & Rev $2,257,200 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $62,176 Total Local Revenue $4,603,693Total Local Expenditures $941,724 Revenue AmountExpenditures Amount Federal Intergovernmental $233,723Intergovernmental $279,688 Local Intergovernmental $6,059Higher Education $419,224 Property Tax $0 Elementary & Secondary Education; Libraries $107 General Sales Tax $4,073,220Welfare -$2,539,350 Motor Fuel Sales Tax $299,079Health $52,141 Alcoholic Bev Sales Tax $90,103Transportation $85,948 Tobacco Sales Tax $20,715Police, Fire, Correction $44,036 Public Utility Sales Tax $347,814 Natural Resources, Parks, Housing $27,507 Other Sales Tax $313,135Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $129,584 Corporate Income Tax $659,410Interest on Debt $19,094 Motor Vehicle License $168,674Utilities, Transit $1,044 Other Tax $371,104Insurance Trusts -$908,728 Education Charges $348,019 Other Charges & Rev $542,857 Utility&Liquor Store Rev $1,751 Unemployment Comp. $67,398 Employee Retirement $1,043 Workers' Comp. $431 Other Ins. Trust Rev $0 Total State Revenue $7,544,536Total State Expenditures -$2,389,705 Table C4 FY 2005 QTI Analysis Hillsborough County, Florida Firm 4 Panel C Local Fiscal Impact Panel D State Fiscal Impact 31

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Table C4, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 4 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. However, the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not applicable $91,034$85,5001.06 Table C4 $91,034.26 FY 2005 QTI Analysis Hillsborough County, Florida Firm 4 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax 32

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Table C5 presents economic and fiscal impacts for Firm 5. Table C5, Panel A and B show direct and estimated total impacts for the firm. The direct 335 QTI-incentivized jobs promote the creation of almost 743 total jobs shown in Table C5, Panel B. Workers in these 743 jobs produce output valued at more than $440 million, and are paid almost $29 million in wages and salary. AnnualAnnualAverage Industry JobsPayroll Wage NAICS 511:335$15,767,110 $47,066 Publishing Industries (except Internet) AnnualAnnualAverage Output JobsPayroll Wage $140,569,600742.7$28,560,000 $38,454 Panel A Direct Impact Panel B Total Economic Impact Table C5 FY 2005 QTI Analysis Hillsborough County, Florida Firm 5 33

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Table C5, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $1.8 million in annual local revenues are anticipated, while there is an increase in local expenditures of slightly more than $0.4 million per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of over $2.6 million and a decrease in State expenditures of more than $0.9 million. Revenue AmountExpenditures Amount Federal Intergovernmental $38,485Intergovernmental $99,666 State Intergovernmental $113,886Higher Education $0 Property Tax $56,204 Elementary & Secondary Education; Libraries $143,640 General Sales Tax $200,378Welfare -$159,030 Motor Fuel Sales Tax $37,552Health $14,487 Alcoholic Bev Sales Tax $0Transportation $29,631 Tobacco Sales Tax $0Police, Fire, Correction $75,945 Public Utility Sales Tax $70,353 Natural Resources, Parks, Housing $20,889 Other Sales Tax $232,492Sewerage, Solid Waste $46,868 Individual Income Tax $0 Administration & Unallocable $118,298 Corporate Income Tax $0Interest on Debt $30,831 Motor Vehicle License $0Utilities, Transit $10,742 Other Tax $28,379Insurance Trusts $0 Education Charges $21,269 Other Charges & Rev $977,983 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $26,943 Total Local Revenue $1,803,923Total Local Expenditures $431,967 Revenue AmountExpenditures Amount Federal Intergovernmental $103,318Intergovernmental $123,633 Local Intergovernmental $2,678Higher Education $185,193 Property Tax $0 Elementary & Secondary Education; Libraries $47 General Sales Tax $1,364,580Welfare -$1,021,793 Motor Fuel Sales Tax $129,789Health $23,034 Alcoholic Bev Sales Tax $39,306Transportation $37,972 Tobacco Sales Tax $9,218Police, Fire, Correction $19,453 Public Utility Sales Tax $84,727 Natural Resources, Parks, Housing $12,158 Other Sales Tax $104,857Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $57,241 Corporate Income Tax $151,540Interest on Debt $8,436 Motor Vehicle License $73,082Utilities, Transit $462 Other Tax $160,774Insurance Trusts -$365,666 Education Charges $150,822 Other Charges & Rev $235,262 Utility&Liquor Store Rev $759 Unemployment Comp. $30,995 Employee Retirement $452 Workers' Comp. $198 Other Ins. Trust Rev $0 Total State Revenue $2,642,358Total State Expenditures -$919,831 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C5 FY 2005 QTI Analysis Hillsborough County, Florida Firm 5 34

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Table C5, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 5 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. However, the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not applicable $71,156$37,5161.90 Table C5 FY 2005 QTI Analysis Hillsborough County, Florida Tangible Property Tax $71,156.02 Firm 5 Panel E Property Tax Collected vs QTI Tax Refund 35

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Table C6 presents economic and fiscal impacts for Firm 6. Table C6, Panel A and B show direct and estimated total impacts for the firm. The direct 200 QTI-incentivized jobs promote the creation of 800 total jobs shown in Table C6, Panel B. Workers in these 800 jobs produce output valued at more than $165 million, and are paid almost $30 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 483:200$8,521,800 $42,609 Water Transportation AnnualAnnualAverage Output JobsPayrollWage $165,158,400800.5$29,880,000 $37,327 Panel B Total Economic Impact Table C6 FY 2005 QTI Analysis Hillsborough County, Florida Firm 6 Panel A Direct Impact 36

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Table C6, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Almost $1.9 million in annual local revenues are anticipated while there is an increase in local expenditures of almost $0.5 million per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of slightly more than $2.4 million and a decrease in State expenditures of almost $1.0 million. Revenue AmountExpenditures Amount Federal Intergovernmental $40,558Intergovernmental $104,960 State Intergovernmental $119,939Higher Education $0 Property Tax $75,770 Elementary & Secondary Education; Libraries $151,335 General Sales Tax $160,672Welfare -$168,469 Motor Fuel Sales Tax $41,358Health $15,267 Alcoholic Bev Sales Tax $0Transportation $31,221 Tobacco Sales Tax $0Police, Fire, Correction $80,007 Public Utility Sales Tax $76,652 Natural Resources, Parks, Housing $22,008 Other Sales Tax $186,424Sewerage, Solid Waste $49,371 Individual Income Tax $0 Administration & Unallocable $124,659 Corporate Income Tax $0Interest on Debt $32,473 Motor Vehicle License $0Utilities, Transit $11,317 Other Tax $31,293Insurance Trusts $0 Education Charges $23,454 Other Charges & Rev $1,078,326 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $29,703 Total Local Revenue $1,864,150Total Local Expenditures $454,149 Revenue AmountExpenditures Amount Federal Intergovernmental $108,859Intergovernmental $130,302 Local Intergovernmental $2,822Higher Education $195,248 Property Tax $0 Elementary & Secondary Education; Libraries $50 General Sales Tax $1,093,716Welfare -$1,082,430 Motor Fuel Sales Tax $142,922Health $24,275 Alcoholic Bev Sales Tax $43,472Transportation $40,024 Tobacco Sales Tax $9,996Police, Fire, Correction $20,510 Public Utility Sales Tax $92,309 Natural Resources, Parks, Housing $12,804 Other Sales Tax $84,101Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $60,329 Corporate Income Tax $106,191Interest on Debt $8,891 Motor Vehicle License $80,572Utilities, Transit $487 Other Tax $177,293Insurance Trusts -$387,418 Education Charges $166,212 Other Charges & Rev $259,373 Utility&Liquor Store Rev $837 Unemployment Comp. $32,401 Employee Retirement $498 Workers' Comp. $207 Other Ins. Trust Rev $0 Total State Revenue $2,401,780Total State Expenditures -$976,928 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C6 FY 2005 QTI Analysis Hillsborough County, Florida Firm 6 37

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Table C6, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 6 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. However, the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not applicable $279,517$11,20024.96 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $279,517.02 Table C6 FY 2005 QTI Analysis Hillsborough County, Florida Firm 6 38

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Table C7 presents economic and fiscal impacts for Firm 7. Table C7, Panel A and B show direct and estimated total impacts for the firm. The direct 33 QTI-incentivized jobs promote the creation of 96 total jobs shown in Table C7, Panel B. Workers in these 96 jobs produce output valued at more than $23 million, and are paid almost $4 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 531:33$2,070,882 $62,754 Real Estate AnnualAnnualAverage Output JobsPayrollWage $23,304,96096.0$3,950,000 $41,142 Panel B Total Economic Impact Table C7 FY 2005 QTI Analysis Hillsborough County, Florida Firm 7 Panel A Direct Impact 39

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Table C7, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Almost $0.2 million in annual local revenues are anticipated, while there is an increase in local expenditures of almost $0.1 million per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of almost $0.4 million and a decrease in State expenditures of almost $0.1million per year. Revenue AmountExpenditures Amount Federal Intergovernmental $4,733Intergovernmental $12,281 State Intergovernmental $14,036Higher Education $0 Property Tax $9,848 Elementary & Secondary Education; Libraries $17,699 General Sales Tax $20,417Welfare -$16,867 Motor Fuel Sales Tax $6,692Health $1,785 Alcoholic Bev Sales Tax $0Transportation $3,652 Tobacco Sales Tax $0Police, Fire, Correction $9,357 Public Utility Sales Tax $20,930 Natural Resources, Parks, Housing $2,573 Other Sales Tax $23,680Sewerage, Solid Waste $5,775 Individual Income Tax $0 Administration & Unallocable $14,579 Corporate Income Tax $0Interest on Debt $3,798 Motor Vehicle License $0Utilities, Transit $1,324 Other Tax $4,894Insurance Trusts $0 Education Charges $3,668 Other Charges & Rev $168,674 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $4,647 Total Local Revenue $282,219Total Local Expenditures $55,956 Revenue AmountExpenditures Amount Federal Intergovernmental $12,702Intergovernmental $15,236 Local Intergovernmental $330Higher Education $22,829 Property Tax $0 Elementary & Secondary Education; Libraries $6 General Sales Tax $139,023Welfare -$108,346 Motor Fuel Sales Tax $23,116Health $2,840 Alcoholic Bev Sales Tax $7,017Transportation $4,681 Tobacco Sales Tax $1,462Police, Fire, Correction $2,399 Public Utility Sales Tax $25,209 Natural Resources, Parks, Housing $1,498 Other Sales Tax $10,681Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $7,056 Corporate Income Tax $50,684Interest on Debt $1,039 Motor Vehicle License $12,599Utilities, Transit $57 Other Tax $27,733Insurance Trusts -$38,773 Education Charges $26,009 Other Charges & Rev $40,568 Utility&Liquor Store Rev $131 Unemployment Comp. $4,312 Employee Retirement $78 Workers' Comp. $28 Other Ins. Trust Rev $0 Total State Revenue $381,681Total State Expenditures -$89,478 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C7 FY 2005 QTI Analysis Hillsborough County, Florida Firm 7 40

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Table C7, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 7 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to th e firm. Also, the Tangible Property Tax folio number showed no tax obligation for the year 2005. Therefore, we estimated the potential Tangible Property Tax based on the weighted-average tangible property tax per QTIincentivized job for all other firms that had a tax obligation in 2005. The tax amount shown is the product of the 33 direct Firm 7 jobs and the 2005 weighted-average tangible tax per incentivized employee of $277.27. Owner-Occupied Property: NO Tangible Property Record: ESTIMATED Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not available $9,150$4,1252.22 Panel E Estimated Property Tax vs QTI Tax Refund Tangible Property Tax $9,149.51 Table C7 FY 2005 QTI Analysis Hillsborough County, Florida Firm 7 41

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Table C8 presents economic and fiscal impacts for Firm 8. Table C8, Panel A and B show direct and estimated total impacts for the firm. The direct 950 QTI-incentivized jobs promote the creation of almost 2,107 total jobs shown in Table C8, Panel B. Workers in these 2,107 jobs produce output valued at almost $462 million, and are paid more than $66 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:950$26,030,000 $27,400 C redit Intermediation and Related Activities AnnualAnnualAverage Output JobsPayrollWage $461,856,0002,107.0$66,350,000 $31,490 Panel B Total Economic Impact Table C8 FY 2005 QTI Analysis Hillsborough County, Florida Firm 8 Panel A Direct Impact 42

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Table C8, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Slightly more than $4.0 million in annual local revenues are anticipated while there is an increase in local expenditures of almost $1.3 million per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of almost $5.2 million and a decrease in State expenditures of nearly $2.7 million. Revenue AmountExpenditures Amount Federal Intergovernmental $114,194Intergovernmental $295,693 State Intergovernmental $337,759Higher Education $0 Property Tax $212,279 Elementary & Secondary Education; Libraries $426,098 General Sales Tax $289,845Welfare -$468,369 Motor Fuel Sales Tax $86,410Health $42,969 Alcoholic Bev Sales Tax $0Transportation $87,908 Tobacco Sales Tax $0Police, Fire, Correction $225,310 Public Utility Sales Tax $182,115 Natural Resources, Parks, Housing $61,960 Other Sales Tax $336,220Sewerage, Solid Waste $139,023 Individual Income Tax $0 Administration & Unallocable $350,995 Corporate Income Tax $0Interest on Debt $91,447 Motor Vehicle License $0Utilities, Transit $31,868 Other Tax $67,029Insurance Trusts $0 Education Charges $50,233 Other Charges & Rev $2,309,526 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $63,633 Total Local Revenue $4,049,242Total Local Expenditures $1,284,901 Revenue AmountExpenditures Amount Federal Intergovernmental $306,569Intergovernmental $366,795 Local Intergovernmental $7,945Higher Education $549,628 Property Tax $0 Elementary & Secondary Education; Libraries $140 General Sales Tax $1,974,024Welfare -$3,009,258 Motor Fuel Sales Tax $298,566Health $68,352 Alcoholic Bev Sales Tax $90,442Transportation $112,655 Tobacco Sales Tax $23,393Police, Fire, Correction $57,743 Public Utility Sales Tax $219,256 Natural Resources, Parks, Housing $36,064 Other Sales Tax $151,643Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $169,906 Corporate Income Tax $679,622Interest on Debt $25,034 Motor Vehicle License $172,573Utilities, Transit $1,370 Other Tax $379,825Insurance Trusts -$1,077,300 Education Charges $356,125 Other Charges & Rev $555,579 Utility&Liquor Store Rev $1,792 Unemployment Comp. $71,646 Employee Retirement $1,068 Workers' Comp. $459 Other Ins. Trust Rev $0 Total State Revenue $5,290,527Total State Expenditures -$2,698,871 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C8 FY 2005 QTI Analysis Hillsborough County, Florida Firm 8 43

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Table C8, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 8 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to th e firm. We searched the Tangible Property Tax records and found a folio number for this firm, which indicates that the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not available $88,299$15,2635.79 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $88,299.46 Table C8 FY 2005 QTI Analysis Hillsborough County, Florida Firm 8 44

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Table C9 presents economic and fiscal impacts for Firm 9. Table C9, Panel A and B show direct and estimated total impacts for the firm. The direct 50 QTI-incentivized jobs promote the creation of almost 71 total jobs shown in Table C9, Panel B. Workers in these 71 jobs produce output valued at more than $5 million, and are paid more than $2 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 561:50$1,727,200 $34,544 Administrative and Support Services AnnualAnnualAverage Output JobsPayrollWage $5,370,36870.5$2,300,000 $32,624 Panel B Total Economic Impact Table C9 FY 2005 QTI Analysis Hillsborough County, Florida Firm 9 Panel A Direct Impact 45

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Table C9, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $0.1 million in annual local revenues are anticipated while there is an increase in local expenditures of about 1/3 the amount of revenue per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of more than $0.1 million and a decrease in State expenditures of almost $0.1 million. Revenue AmountExpenditures Amount Federal Intergovernmental $3,900Intergovernmental $10,086 State Intergovernmental $11,522Higher Education $0 Property Tax $3,620 Elementary & Secondary Education; Libraries $14,528 General Sales Tax $6,901Welfare -$13,687 Motor Fuel Sales Tax $2,809Health $1,465 Alcoholic Bev Sales Tax $0Transportation $2,997 Tobacco Sales Tax $0Police, Fire, Correction $7,680 Public Utility Sales Tax $4,365 Natural Resources, Parks, Housing $2,113 Other Sales Tax $8,005Sewerage, Solid Waste $4,740 Individual Income Tax $0 Administration & Unallocable $11,963 Corporate Income Tax $0Interest on Debt $3,118 Motor Vehicle License $0Utilities, Transit $1,087 Other Tax $2,178Insurance Trusts $0 Education Charges $1,632 Other Charges & Rev $75,083 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $2,068 Total Local Revenue $122,083Total Local Expenditures $46,089 Revenue AmountExpenditures Amount Federal Intergovernmental $10,465Intergovernmental $12,507 Local Intergovernmental $271Higher Education $18,786 Property Tax $0 Elementary & Secondary Education; Libraries $5 General Sales Tax $46,981Welfare -$87,877 Motor Fuel Sales Tax $9,704Health $2,336 Alcoholic Bev Sales Tax $2,934Transportation $3,852 Tobacco Sales Tax $787Police, Fire, Correction $1,974 Public Utility Sales Tax $5,255 Natural Resources, Parks, Housing $1,232 Other Sales Tax $3,612Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $5,806 Corporate Income Tax $4,793Interest on Debt $856 Motor Vehicle License $5,610Utilities, Transit $47 Other Tax $12,343Insurance Trusts -$31,447 Education Charges $11,573 Other Charges & Rev $18,058 Utility&Liquor Store Rev $58 Unemployment Comp. $2,494 Employee Retirement $35 Workers' Comp. $16 Other Ins. Trust Rev $0 Total State Revenue $134,989Total State Expenditures -$71,923 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C9 FY 2005 QTI Analysis Hillsborough County, Florida Firm 9 46

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Table C9, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 9 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. Also, we searched the Tangible Property Tax records and were unable to find a folio number for this firm for the year 2005. Therefore, we estimated the potential Tangible Property Tax based on the weightedaverage tangible property tax per QTI-incentivized job for all other firms that had a tax obligation in 2005. The tax amount shown is the product of the 50 direct Firm 9 jobs and the 2005 weighted-average tangible tax per incentivized employee of $277.27. Owner-Occupied Property: NO Tangible Property Record: ESTIMATED Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not available $13,864$3,7503.70 Panel E Estimated Property Tax vs QTI Tax Refund Tangible Property Tax $13,863.50 Table C9 FY 2005 QTI Analysis Hillsborough County, Florida Firm 9 47

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Table C10 presents economic and fiscal impacts for Firm 10. Table C10, Panel A and B show direct and estimated total impacts for the firm. The direct 60 QTIincentivized jobs promote the creation of almost 125 total jobs shown in Table C10, Panel B. Workers in these 125 jobs produce output valued at almost $18 million, and are paid over $4 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 524:60$2,141,460 $35,691 Insurance Carriers and Related Activities AnnualAnnualAverage Output JobsPayrollWage $17,777,920124.7$4,475,000 $35,886 Panel B Total Economic Impact Table C10 FY 2005 QTI Analysis Hillsborough County, Florida Firm 10 Panel A Direct Impact 48

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Table C10, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $0.2 million in annual local revenues are anticipated while there is an increase in local expenditures of slightly more than the amount of revenues per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of almost $0.3 million and a decrease in State expenditures of nearly $0.2 million. Revenue AmountExpenditures Amount Federal Intergovernmental $6,042Intergovernmental $15,667 State Intergovernmental $17,904Higher Education $0 Property Tax $10,027 Elementary & Secondary Education; Libraries $22,603 General Sales Tax $13,584Welfare -$27,425 Motor Fuel Sales Tax $5,764Health $2,279 Alcoholic Bev Sales Tax $0Transportation $4,662 Tobacco Sales Tax $0Police, Fire, Correction $11,943 Public Utility Sales Tax $8,095 Natural Resources, Parks, Housing $3,286 Other Sales Tax $15,759Sewerage, Solid Waste $7,373 Individual Income Tax $0 Administration & Unallocable $18,612 Corporate Income Tax $0Interest on Debt $4,850 Motor Vehicle License $0Utilities, Transit $1,690 Other Tax $4,393Insurance Trusts $0 Education Charges $3,292 Other Charges & Rev $151,438 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $4,171 Total Local Revenue $240,470Total Local Expenditures $65,539 Revenue AmountExpenditures Amount Federal Intergovernmental $16,221Intergovernmental $19,443 Local Intergovernmental $421Higher Education $29,077 Property Tax $0 Elementary & Secondary Education; Libraries $7 General Sales Tax $92,494Welfare -$176,267 Motor Fuel Sales Tax $19,915Health $3,617 Alcoholic Bev Sales Tax $6,029Transportation $5,962 Tobacco Sales Tax $1,418Police, Fire, Correction $3,055 Public Utility Sales Tax $9,748 Natural Resources, Parks, Housing $1,908 Other Sales Tax $7,110Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $8,988 Corporate Income Tax $13,882Interest on Debt $1,325 Motor Vehicle License $11,317Utilities, Transit $72 Other Tax $24,891Insurance Trusts -$63,078 Education Charges $23,342 Other Charges & Rev $36,413 Utility&Liquor Store Rev $117 Unemployment Comp. $4,853 Employee Retirement $70 Workers' Comp. $31 Other Ins. Trust Rev $0 Total State Revenue $268,271Total State Expenditures -$165,891 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C10 FY 2005 QTI Analysis Hillsborough County, Florida Firm 10 49

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Table C10, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 10 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to the firm. However, the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not applicable $121,923$9,00013.55 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $121,922.98 Table C10 FY 2005 QTI Analysis Hillsborough County, Florida Firm 10 50

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Table C11 presents economic and fiscal impacts for Firm 11. Table C11, Panel A and B show direct and estimated total impacts for the firm. The direct 1,330 QTIincentivized jobs promote the creation of 3,003 total jobs shown in Table C11, Panel B. Workers in these 3,003 jobs produce output valued at almost $653 million, and are paid almost $100 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:1,330$43,025,500 $32,350 Credit Intermediation & Related Activities AnnualAnnualAverage Output JobsPayrollWage $652,800,0003,003.0$99,850,000 $33,250 Panel B Total Economic Impact Table C11 FY 2005 QTI Analysis Hillsborough County, Florida Firm 11 Panel A Direct Impact 51

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Table C11, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $6.0 million in annual local revenues are anticipated while there is an increase in local expenditures of slightly more than $1.8 million per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of over $7.8 million and a decrease in State expenditures of almost $3.8 million. Revenue AmountExpenditures Amount Federal Intergovernmental $160,466Intergovernmental $415,633 State Intergovernmental $474,833Higher Education $0 Property Tax $308,929 Elementary & Secondary Education; Libraries $598,979 General Sales Tax $425,893Welfare -$658,384 Motor Fuel Sales Tax $131,944Health $60,411 Alcoholic Bev Sales Tax $0Transportation $123,530 Tobacco Sales Tax $0Police, Fire, Correction $316,624 Public Utility Sales Tax $267,991 Natural Resources, Parks, Housing $87,087 Other Sales Tax $494,122Sewerage, Solid Waste $195,453 Individual Income Tax $0 Administration & Unallocable $493,403 Corporate Income Tax $0Interest on Debt $128,558 Motor Vehicle License $0Utilities, Transit $44,795 Other Tax $101,461Insurance Trusts $0 Education Charges $76,037 Other Charges & Rev $3,496,608 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $96,321 Total Local Revenue $6,034,604Total Local Expenditures $1,806,088 Revenue AmountExpenditures Amount Federal Intergovernmental $430,920Intergovernmental $515,565 Local Intergovernmental $11,173Higher Education $772,681 Property Tax $0 Elementary & Secondary Education; Libraries $197 General Sales Tax $2,900,502Welfare -$4,230,198 Motor Fuel Sales Tax $455,852Health $96,085 Alcoholic Bev Sales Tax $138,202Transportation $158,414 Tobacco Sales Tax $34,535Police, Fire, Correction $81,167 Public Utility Sales Tax $322,677 Natural Resources, Parks, Housing $50,695 Other Sales Tax $222,950Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $238,750 Corporate Income Tax $957,463Interest on Debt $35,182 Motor Vehicle License $261,322Utilities, Transit $1,926 Other Tax $574,868Insurance Trusts -$1,514,376 Education Charges $539,060 Other Charges & Rev $841,012 Utility&Liquor Store Rev $2,714 Unemployment Comp. $108,038 Employee Retirement $1,616 Workers' Comp. $692 Other Ins. Trust Rev $0 Total State Revenue $7,803,596Total State Expenditures -$3,793,913 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C11 FY 2005 QTI Analysis Hillsborough County, Florida Firm 11 52

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Table C11, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 11 is listed as the owner of the commercial facility where the business is physically located. Therefore, Real Property Tax is directly attributable to the firm. In addition, the firm pays Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: YES Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio $721,388.59 $775,324$31,91124.30 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $53,935.73 Table C11 FY 2005 QTI Analysis Hillsborough County, Florida Firm 11 53

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Table C12 presents economic and fiscal impacts for Firm 12. Table C12, Panel A and B show direct and estimated total impacts for the firm. The direct 530 QTIincentivized jobs promote the creation of 1,189 total jobs shown in Table C12, Panel B. Workers in these 1,189 jobs produce output valued at more than $259 million, and are paid almost $39 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 522:530$16,165,000 $30,500 Credit Intermediation & Related Activities AnnualAnnualAverage Output JobsPayrollWage $259,270,4001,189.0$38,760,000 $32,599 Panel B Total Economic Impact Table C12 FY 2005 QTI Analysis Hillsborough County, Florida Firm 12 Panel A Direct Impact 54

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Table C12, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Almost $2.4 million in annual local revenues are anticipated while there is an increase in local expenditures of slightly more than $0.7 million per year. Panel D reports that the fiscal impacts to the State of Florida is an increase in revenue of slightly more than $3.0 million and a decrease in State expenditures of just over $1.5 million. Revenue AmountExpenditures Amount Federal Intergovernmental $63,807Intergovernmental $165,186 State Intergovernmental $188,784Higher Education $0 Property Tax $121,376 Elementary & Secondary Education; Libraries $238,135 General Sales Tax $166,725Welfare -$262,143 Motor Fuel Sales Tax $50,961Health $24,019 Alcoholic Bev Sales Tax $0Transportation $49,125 Tobacco Sales Tax $0Police, Fire, Correction $125,890 Public Utility Sales Tax $104,857 Natural Resources, Parks, Housing $34,617 Other Sales Tax $193,401Sewerage, Solid Waste $77,689 Individual Income Tax $0 Administration & Unallocable $196,171 Corporate Income Tax $0Interest on Debt $51,095 Motor Vehicle License $0Utilities, Transit $17,811 Other Tax $39,296Insurance Trusts $0 Education Charges $29,456 Other Charges & Rev $1,354,320 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $37,305 Total Local Revenue $2,350,289Total Local Expenditures $717,595 Revenue AmountExpenditures Amount Federal Intergovernmental $171,239Intergovernmental $204,995 Local Intergovernmental $4,440Higher Education $307,082 Property Tax $0 Elementary & Secondary Education; Libraries $78 General Sales Tax $1,134,756Welfare -$1,683,666 Motor Fuel Sales Tax $176,062Health $38,198 Alcoholic Bev Sales Tax $53,342Transportation $62,955 Tobacco Sales Tax $13,482Police, Fire, Correction $32,257 Public Utility Sales Tax $126,301 Natural Resources, Parks, Housing $20,151 Other Sales Tax $87,251Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $94,905 Corporate Income Tax $380,646Interest on Debt $13,984 Motor Vehicle License $101,194Utilities, Transit $765 Other Tax $222,642Insurance Trusts -$602,672 Education Charges $208,791 Other Charges & Rev $325,755 Utility&Liquor Store Rev $1,051 Unemployment Comp. $41,902 Employee Retirement $626 Workers' Comp. $268 Other Ins. Trust Rev $0 Total State Revenue $3,049,746Total State Expenditures -$1,510,967 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C12 FY 2005 QTI Analysis Hillsborough County, Florida Firm 12 55

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Table C12, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 12 is listed as the owner of the commercial facility where the business is physically located. Therefore, Real Property Tax is directly attributable to the firm. In addition, the firm pays Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: YES Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio $922,360.13 $1,184,687$39,75029.80 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $262,326.97 Table C12 FY 2005 QTI Analysis Hillsborough County, Florida Firm 12 56

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Table C13 presents economic and fiscal impacts for Firm 13. Table C13, Panel A and B show direct and estimated total impacts for the firm. The direct 20 QTIincentivized jobs promote the creation of 85 total jobs shown in Table C13, Panel B. Workers in these 85 jobs produce output valued at almost $13 million, and are paid almost $4 million in wages and salary. AnnualAnnualAverage Industry JobsPayrollWage NAICS 483:20$1,500,000 $75,000 Water Transportation AnnualAnnualAverage Output JobsPayrollWage $12,914,56085.0$3,647,000 $42,896 Panel B Total Economic Impact Table C13 FY 2005 QTI Analysis Hillsborough County, Florida Firm 13 Panel A Direct Impact 57

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Table C13, Panel C, details the local fiscal impact of the firms business operations in Hillsborough County. Over $0.2 million in annual local revenues are anticipated while there is an increase in local expenditures of slightly more than 20% of the revenue amount per year. Panel D reports that the fiscal impact to the State of Florida is an increase in revenue of almost $0.3 million and a decrease in State expenditures of almost $0.1 million. Revenue AmountExpenditures Amount Federal Intergovernmental $4,082Intergovernmental $10,558 State Intergovernmental $12,056Higher Education $0 Property Tax $8,602 Elementary & Secondary Education; Libraries $15,195 General Sales Tax $17,955Welfare -$17,114 Motor Fuel Sales Tax $5,164Health $1,533 Alcoholic Bev Sales Tax $0Transportation $3,135 Tobacco Sales Tax $0Police, Fire, Correction $8,035 Public Utility Sales Tax $8,883 Natural Resources, Parks, Housing $2,210 Other Sales Tax $20,828Sewerage, Solid Waste $4,959 Individual Income Tax $0 Administration & Unallocable $12,517 Corporate Income Tax $0Interest on Debt $3,262 Motor Vehicle License $0Utilities, Transit $1,137 Other Tax $3,848Insurance Trusts $0 Education Charges $2,884 Other Charges & Rev $132,559 Utility&Liquor Store Rev $0 Unemployment Comp. $0 Employee Retirement $3,653 Total Local Revenue $220,513Total Local Expenditures $45,426 Revenue AmountExpenditures Amount Federal Intergovernmental $10,958Intergovernmental $13,092 Local Intergovernmental $284Higher Education $19,689 Property Tax $0 Elementary & Secondary Education; Libraries $5 General Sales Tax $122,197Welfare -$109,885 Motor Fuel Sales Tax $17,842Health $2,449 Alcoholic Bev Sales Tax $5,423Transportation $4,036 Tobacco Sales Tax $1,154Police, Fire, Correction $2,068 Public Utility Sales Tax $10,701 Natural Resources, Parks, Housing $1,292 Other Sales Tax $9,395Sewerage, Solid Waste $0 Individual Income Tax $0 Administration & Unallocable $6,085 Corporate Income Tax $11,173Interest on Debt $897 Motor Vehicle License $9,909Utilities, Transit $49 Other Tax $21,803Insurance Trusts -$39,337 Education Charges $20,448 Other Charges & Rev $31,898 Utility&Liquor Store Rev $103 Unemployment Comp. $3,972 Employee Retirement $61 Workers' Comp. $25 Other Ins. Trust Rev $0 Total State Revenue $277,347Total State Expenditures -$99,559 Panel C Local Fiscal Impact Panel D State Fiscal Impact Table C13 FY 2005 QTI Analysis Hillsborough County, Florida Firm 13 58

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Table C13, Panel E, presents the ratio of direct property tax paid to the local (Hillsborough County) share of the QTI tax ref und. Firm 13 is not listed as the owner of the commercial facility where the business is physically located. Therefore, no Real Property Tax is directly attributable to th e firm. We searched the Tangible Property Tax records and found a folio number for this firm, which indicates that the firm does pay Tangible Property Tax for material items used in its operation. At this level, the direct ad valorem and tangible property tax collected exceeds the local share of the QTI refund resulting in a positive effect to the county in FY 2005. Owner-Occupied Property: NO Tangible Property Record: YES Total Direct DPTP to Property Tax PaidQTI RefundQTI Refund Real Property Tax (DPTP)(county share)Ratio not available $12,840 $50025.68 Panel E Property Tax Collected vs QTI Tax Refund Tangible Property Tax $12,840.09 Table C13 FY 2005 QTI Analysis Hillsborough County, Florida Firm 13 59


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