GULFPORT, Miss. (WLOX) - A tax abatement program in the city of Gulfport, designed to spur economic development south of the railroad tracks, is ending.
City of Gulfport economic development director David Parker said the program worked for residential properties, but zero commercial interests were able to take advantage of the program.
One of the reasons is that the minimum capital requirement was $2 million. The program began in 2015 and ended late last year for new applicants. Those who pulled construction permits on or before Dec. 31, 2020 are still eligible.
“That program has been successful,” Parker said. “And like most successful programs, we’re winding it down because it accomplished what we hoped it would.”
Parker said that about 50 homeowners, who met the $300,000 investment minimum, took advantage of the program. The abatement basically keeps city ad valorem taxes the same for seven years. Parker also said the program was a success despite the lack of commercial buy in.
“We’ve seen commercial development all over the city and it’s not just in one area,” said Parker. “I’ve had people from communities all over the state ask for a copy of our tax abatement program so they could try to implement something similar in their communities. And, we’re real proud of the way it performed.”
A separate tax abatement program still exists for the downtown area of Gulfport.