Some businesses in Rantoul will be eligible for property tax and sales tax breaks after the village officially established a new enterprise zone Dec 8.
Enterprise zones are tools for local governments to attract and promote economic development in a particular area. By offering incentives such as tax breaks, cities can lure businesses to one concentrated area, creating a kind of business district that officials say will benefit the city and residents.
The Rantoul ordinance outlines a zone no smaller than half of 1 square mile and no larger than 12 square miles. Businesses within that zone that build new improvements or renovate an existing business will have their property taxes waived for five years. Mixed-use properties can also qualify if more than half of their area is dedicated to commercial purposes.
Enterprise zone businesses will also be able to use their purchase of building materials for improvement to qualify them for an exemption from Rantoul sales tax. The exemption lasts as long as the enterprise zone exists.
The enterprise zone will be managed by the zone administrator, who will be appointed by the village president. The zone will take effect at the beginning of 2018 and be authorized for 15 years.
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