The City of San Luis offers new and existing companies incentives for establishing within the city limits.
No Property Tax
The City of San Luis has not property tax which becomes a unique incentive for companies locating in San Luis.
Retail Tax Incentive Agreement
ARS Statue A.R.S. Section 9-500.11 provides in part that for a tax credit to be provided by the Retail Tax Incentive Agreement, at all times the sales, use, or transaction privilege taxes payable to the City in connection with the construction, development, or operation of retail development activities on the site of the Project must equal or exceed the amount of the credit being given to or its nominee or assignee. It requires verification by an independent third party that any tax incentive provided must raise more revenue than the amount of the incentive. Article 9 Section 7 of the Arizona Constitution prohibits any subdivision of the State giving or lending its credit or making any donation, grant, or subsidy to any person, association, or corporation. Arizona has recognized that if (i) the public receives benefits that meet or exceed the cost to the public treasury and (ii) if the expenditure of public funds is for a public purpose, then there is consideration for the transaction and the matter is not in violation of this provision of law. The City of San Luis has been at the forefront of being willing to consider any legal structure that meets these standards.
Foreign Trade Zone
A Foreign Trade Zone (FTZ) is a designated geographic area considered to be officially outside the U.S. Custom territory. Foreign Trade Zones (FTZs) area designed to promote American competitiveness by encouraging companies to maintain and expand their operations in the United States. Federally designated sites encourage U.S. –based operations by removing or reducing tariffs, minimizing processing fees and expediting the transport of good from the Port of Entry. These and other benefits can assist your expansion efforts as a growing business.
Benefits for Companies
- Allows businesses to defer, reduce or eliminate duty on goods imported into the U.S.
- Provides services similar to a bonded warehouse, but with greater flexibility and benefits.
- Permits businesses to manipulate goods prior to going through Customs
- Affords storage of imported goods onsite for an indefinite period of time
- Supports site specific subzones for qualified businesses to locate within specify areas.
Activities permitted within Foreign Trade Zone
- Testing, storage, mixing, relabeling, processing, sampling, salvage, destruction of merchandise and other manipulating of merchandise.