WESTERN MARICOPA ENTERPRISE ZONE

 

WHAT IS THE WMEZ

 

The Western Maricopa Enterprise Zone, an alliance of 11 political jurisdictions, offers property tax reductions and/or corporate income tax credits to new and expanding businesses who increase job opportunities, capital investment, and business vitality to the Zone. The WMEZ was reauthorized by the State of Arizona January 1, 2004, extending the zone for a period of four years. The WMEZ encompasses more than 5,600 square miles in Western Maricopa County, Arizona. To view the 2004-05 WMEZ Annual Report, click here.

 

THE WMEZ COMMISSION

 

The Western Maricopa Enterprise Zone Commission meets a minimum of two times yearly. To view minutes from previous WMEZ Commission meetings, click here.

 

WHAT CAN THE WMEZ DO FOR MY BUSINESS?

 

INCOME TAX CREDITS

 

Employers who expand and create new quality jobs or relocate in the WMEZ can be eligible for State of Arizona Corporate Income Tax credits of up to $3,000 per job over a three-year period for the net increase of employment of qualified employees. For example, one (net) new job created could result in:

• 1st Year - 1/4 of taxable wages of qualified employee up to $ 500.00

• 2nd Year - 1/3 of taxable wages of qualified employee up to $1000.00

• 3rd Year - 1/2 of taxable wages of qualified employee up to $1500.00

Total Tax Credits for 1 New Job Created up to $3000.00

 

A quality job

 

must be full-time (1750 hours per year) employment

provides health benefits at least 50% paid by the employee

pays a minimum target wage annually computed by the department of economic security research administration division

 

A qualified employee

 

must reside in the state of Arizona

must not have been employed by the taxpayer during the prior 12 months

35% of all employees on whom a credit is taken must reside on the date of hire in an enterprise zone that is located in the same county in which the company is located

 

A qualified business

 

has no more than 10% of the business activity conducted at the location consisting of the sale of tangible personal property at retail, measured by the number of employees assigned to retail activities at the zone location.

 

PROPERTY TAX REDUCTION

 

Qualified Manufacturing Businesses will be eligible for a primary property tax reduction of 40-60% based on property reclassified to class 6 for tax assessment purposes. Fixed asset investment (land, building and equipment) requirements are:

• $500,000 in communities with population of less than 10,000 and more than 25 miles from the city of Phoenix.

• $1,000,000 in communities with populations between 10,000 and 80,000 and in unincorporated areas of the zone.

• $2,000,000 in communities with populations greater than 80,000

The reduction in taxes applies to existing and new fixed asset investments for up to five years

 

A Qualified Manufacturing Business is:

1. a small manufacturing business that employs fewer than 100 people at the Zone location or had gross annual receipts of less than four million dollars in its last fiscal year, and is independently owned and operated , or

2. a minority-owned manufacturing business where the majority of the business is owned and operated by people of African-American, Latin American, Asian, Native American or other minority origin or descent, or

3. a woman-owned manufacturing business where the majority of business is owned and operated by a woman.

FOR ADDITIONAL INFORMATION

 

Contact WESTMARC, WMEZ Administrator, (623) 435-0431, wmez@westmarc.org or contact the city representative in which you wish to locate or expand your business.

 

To download a pdf map of the Western Maricopa Enterprise Zone, Click Here.

 

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