Title
An Ordinance Of The City Of Hollywood, Florida, Amending Article 4 Of The Zoning And Land Development Regulations Entitled "Schedule Of District, Use And Setback Regulations" By Amending Section 4.6 To Create An Incentive Program For The Downtown Core Within The Young Circle - Hollywood Boulevard - South Federal Highway Opportunity Zone Area; Providing For A Repealer Provision And A Severability Clause. (19-T-66)
Body
Staff Recommends: Approval of the attached Ordinance.
Explanation:
Opportunity Zones were created across the country through the passage of the 2017 Federal Tax Cuts and Jobs Act with Governors in each state able to designate 25 percent of the qualifying census tracts as Opportunity Zones to incentivize investment in these economically distressed areas. Two census tracts in Hollywood (12011080500 and 12011091801), were designated Opportunity Zones and investments in these areas receive preferential tax treatment under the U.S. Tax Cuts and Jobs Act of 2017. Through investing capital gains in a qualified Opportunity Fund, an investment vehicle organized to make investments in Opportunity Zones, investors can defer federal taxes on that gain until no later than December 31, 2026. Those who hold the investment in the Qualified Opportunity for seven years will receive a 15 percent step up in basis reducing their tax liability; and those who hold the investment for five years will receive a 10 percent step up in basis which allows taxpayers to exclude up to 15 percent of the value of their reinvested capital gains from their taxable income, decreasing their tax liability when they sell or can no longer defer taxation. To take full advantage of the tax incentives offered by investing in an Opportunity Zone, a taxpayer would have to invest funds no later than December 31, 2021; and
Currently, 17 federal agencies have developed 132 different actions to further enhance the Opportunity Zone program and have encouraged state and local governmen...
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