On August 24, 2010, City of Sarasota voters passed a referendum that enabled the City to promote economic development by providing financial incentives "that will encourage new businesses to relocate within its jurisdiction, and existing businesses to expand, creating employment opportunities that will benefit the entire community".

Ordinance No. 10-4938 was adopted by the City Commission on January 18, 2011 under a ten year term, and provided the City with the opportunity to grant limited Ad Valorem Tax Exemptions to qualifying applicants based on an applicant's ability to create and sustain new jobs within City limits.

On November 3, 2020, City of Sarasota voters again passed a referendum that would extend the Economic Development Ad Valorem Tax Exemption (EDAVTE) program for ten years (through 2030).

On January 3, 2022 the City Commission adopted Ordinance No. 22-5394 to amend and reinstate Article IV of Chapter 32, of the Sarasota City Code entitled "Economic Development Ad Valorem Tax Exemption (EDVATE)". The major amendments to the Ordinance include the application process, the minimum eligibility requirements, change of ownership requirements and the sunset date.

Written applications must be filed with the City Auditor and Clerk no later than February 1st of the year the exemption is desired to take effect, however, the application may be for a business that became an eligible new business or expansion of existing business within the preceding five years prior to the year in which the exemption is being sought.

The minimum eligibility requirements are as follows:

• The total number of net new jobs to be created by the applicant;
• The average wage of the new jobs;
• The capital investment to be made by the applicant;
• The type of business or operation and whether it qualifies as a targeted industry as may be identified from time to time by the Commission;
• The environmental impact of the proposed business or operation;
• The extent to which the applicant intends to source its supplies and materials within the applicable jurisdiction; and
• Any other economic-related characteristics or criteria deemed necessary by the Commission.

Any business granted an exemption must inform the Commission in writing forty-five (45) days prior to any change in ownership of the business granted the exemption. Failure to notify the Commission in writing of any changes in ownership is cause for revocation of the ordinance granting the exemption, at the Commission's discretion.

Pursuant to F.S. . § 196.1995, this article shall expire on November 3, 2030, such date being ten (10) years after the date such authority to grant Economic Development Ad Valorem Tax Exemptions was approved by the electors of the City of Sarasota voting on the question in a referendum. No business shall be allowed to begin receiving such exemption after that date; however, the expiration shall not affect the operation of any exemption for which a business has qualified under this article prior to November 3, 2030.

To obtain a copy of the ordinance please click here.