The City of Modesto recently announced details of a new tax relief and cash incentive program to lure businesses to downtown Modesto. The tax breaks apply variably to new businesses and existing businesses.
The new Modesto tax relief program will be available to businesses located on 10th Street between K Street and H Street; 11th Street between K Street and I Street; and J Street between 9th Street and McHenry Avenue.
New Modesto retail businesses will be eligible for a full refund of Modesto City mill taxes and local sales taxes for the first year of business. Existing Modesto retail businesses that extend their hours will be eligible for a refund of Modesto local sales tax only collected during the extended hours for one year.
The City of Modesto is also promoting cash incentives for job creation in the downtown Modesto area for both retail and non-retail businesses. Other incentives are available for new developments and physical improvements. Full details of Modesto’s business and development incentive program are available on the City of Modesto’s website.
With an overall improving economy it’s good to see local government risk a short-term loss in tax revenue for the long-term impact new businesses may bring. Hopefully for Modesto, the gamble pays off.