The term of the Flora/Clay County Enterprise Zone is for twenty (20) years from the original date of July 1, 1987. This was amended in 2005 for ten (10) years. The current Enterprise Zone will expire July 1, 2017.
Sales Tax Deductions:
Each retailer in Illinois who makes a sale of building materials to be permanently affixed and incorporated into real estate located within the boundary of the Flora/Clay County Enterprise Zone may deduct tax receipts from retail sales for remodeling, rehabilitation, or new construction. This retail tax is imposed by the State of Illinois under and pursuant to the Retailer’s Occupation Tax Act (35 ILCS 120/1). The deduction allowed hereby shall be limited to and shall only apply to any qualified residential, commercial, industrial or manufacturing building. A building permit is required and obtained by the Enterprise Zone Administrator to issue a “Certificate of Eligibility” qualifying the construction. A copy of which is required to be provided to the applicable building materials retailer at the time of sale records for the purpose of documenting any such deduction.
Property Tax Abatement: The Flora/Clay County Enterprise Zone real property tax abatements are as follows for those areas within the enterprise zone and not located in the TIF District.Projects located within Clay City have different abatements, per contract with the Clay County Village Clerk.
|Industrial (10 years-July 1, 2017)|
|6||Unit #35 School District||50%|
|Commercial (10 years-July 1, 2017)|
|Residential (5 years-July 1, 2017)|
Tax Increment Financing
In 1997 the Flora City Council voted to begin using an economic tool approved by the State of Illinois known as “Tax Increment Financing” or TIF. TIF funds originate from the tax money generated from an improvement or development greater than the tax generated by the site before the improvement or development. This tax increment money is then allocated to the City for its use in making street, water, and sewer improvements in the District during the life of the District. At the end of the TIF term, all of the taxes will again be paid to the regular taxing bodies but at a much higher assessed valuation than would have been possible without the TIF.