RICHMOND — Businesses looking to get a tax break on projects in Richmond soon will have to meet higher standards when it comes to employee wages, jobs created and other factors.
Richmond Common Council held a special meeting Monday night to talk about draft versions of two ordinances that would change the city's tax abatement procedures.
Abatements are used to allow companies to phase in over a set number of years the amount of new property taxes on things such as equipment and real estate. They're meant to be an incentive to encourage new projects in the community.
The ordinances would raise the requirements for companies seeking to take advantage of the city's basic and alternative abatements by setting specific minimums in a handful of areas.
Currently, city code says council members are to take into consideration several factors including the amount of wages paid by the company, whether health benefits are offered, the amount of the investment and the number of employees to be added or retained.
Under the proposed rules, health insurance would be required for any abatement as would an average wage of at least twice the state's minimum (not counting management pay). Currently, the city's typical abatement only requires a wage of $9.50 an hour
For a basic abatement of five years, a company also would have to spend at least $250,000 on a project that would add a minimum of five employees or invest $500,000 or more if workers aren't being added.
To get a 10-year abatement, companies would have to spend more than $500,000 and add at least five employees.