City Throwing $3.5 Million at KPMG For Local Job Growth and Investment And There's Nothing Wrong With That



The City of Orlando will pay a company called KPMG (Website) a total of $3,502,887 in tax refunds over 7 years if they build their 800,000 square foot training center, conference center and lodging facility in Orlando.

The City of Orlando says it will benefit from the development of KPMG’s training, conference center and lodging facility through continued job growth and investment plus an additional economic impact from the 48,000 KPMG employee visits expected to travel to Orlando each year for training and professional development.

The Qualified Target Industry Tax Refund (About) Resolution was adopted by City Council on December 12. The Economic Development Incentive Agreement was approved then as well. 

The City of Orlando proposed to provide KPMG a Tax Rebate in an amount not to exceed 25% of the City of Orlando real and tangible property taxes assessed on the property for a period of seven years beginning in Fiscal Year 2020-2021 through 2026-2027, with a maximum cumulative rebate amount over that time period not exceeding $3,502,887 and the maximum annual rebate amount not exceeding $500,412.

Headquartered in New York City, KPMG LLP (KPMG) provides audit, tax and advisory services and industry insight to help organizations negotiate risks and perform in today’s dynamic and challenging environments.
  1. U.S. staff, including partners: 29,000+
  2. Worldwide staff, including partners: 174,000
  3. U.S. offices: 90 in all 50 states
  4. Worldwide offices: 700+ in 155 countries
  5. Annual revenue in the U.S.: $7.9 billion for the fiscal year ending Sept. 30, 2015
  6. Worldwide annual revenue: $24.44 billion for the fiscal year ending Sept. 30, 2015
  7. Market share: KPMG serves more than 80% of the FORTUNE Global 500 and more than 75% of the Forbes Global 1000
According to the City of Orlando's Qualified Target Industry Tax Refund Info Page (Read in Full Here), the "Qualified Target Industry Tax Refund Program (QTI) is a tool available through the State of Florida Department of Economic Opportunity (DEO) to encourage quality job growth to targeted growth industries. This program supports the City’s efforts to diversify the Orlando economy."

More from that page....

Under QTI, pre-approved applicants who create qualifying jobs in Florida receive tax refunds of $3,000 per new job created ($6,000 in an Enterprise Zone)
  • For businesses paying 150% of the average annual wage, add $1,000 per qualifying job
  • For businesses paying 200% of the average annual wage, add $2,000 per job
  • An approved applicant receives refunds on taxes paid, including corporate income, sales and use, ad valorem, intangible personal property, insurance premium and certain other taxes.
  • There is a cap of $5 million per single qualified applicant in all years, and no more than 25% of the total refund approved may be taken in any single fiscal year.

A company must apply to the City of Orlando and Enterprise Florida prior to making a decision to locate or expand in Florida. A qualified applicant must:
  1. Be a targeted growth industry, as defined by the State of Florida
  2. Demonstrate that the tax refund is necessary for the business to locate or expand in the community
  3. Create at least 10 new jobs in the City of Orlando
  4. If it is an expansion project, the business must increase employment by at least 10% (whichever is greater). For businesses located within the Orlando Enterprise Zone, the increase in employment may be waived.
  5. Pay an average annual wage that is at least 115% of the State, metropolitan statistical area (MSA) or the local average wage
  6. For businesses located in an Enterprise Zone, the wage requirements may be waived.
  7. Demonstrate that the jobs make a significant economic contribution to the local economy
  8. Demonstrate that there is out-of-state competition for the project application
  9. Complete a QTI application for the City Orlando and Enterprise Florida
If the company is approved, a resolution is taken before the Orlando City Council recommending the applicant for the QTI program. Enterprise Florida evaluates the application and makes a recommendation to DEO who makes the final decision on the project. DEO issues its approval or disapproval of the application in the form of a Final Order. Upon approval, the Final Order indicates the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs. Once the QTI application is approved, the business works with the City of Orlando and DEO to finalize a tax refund incentive agreement

The City of Orlando and Enterprise Florida will shepherd businesses through the entire process, ensuring that the company understands what is required to complete an effective application.