By Lena Mitchell/NEMS Daily Journal
CORINTH – Corinth expects confirmation from the state Department of Revenue that it has been approved for entertainment districts described in a new ordinance.
The city board passed the ordinance earlier this month that defines two areas in Corinth that would qualify for the tax break the designation allows.
The two areas include downtown Corinth and the Crossroads Arena at South Harper and Levee roads.
“I think in having those two areas designated it gives us another economic development tool should anybody be looking for a place to expand or establish a new business defined as entertainment in the law,” said Kristy White, executive director of the Corinth Area Convention and Visitors Bureau. “We’re not courting anybody in particular, but when anyone is looking at Mississippi this puts us in play with other communities.”
The CVB and The Alliance economic development organization have been working with the secretary of state’s office to urge the city to establish the entertainment districts.
Under the Entertainment District Act, passed as House Bill 1623 in 2009, a tax incentive allows accelerated deprecia-tion on new construction or renovated properties used as entertainment venues. The law allows full depreciation in five years instead of the usual almost 40 years.
Upon receipt of the city’s application and the ordin-ance designating the geographic boundaries of the districts, the state Department of Revenue awards the designation. The state’s tax losses would be recouped when businesses in the entertainment district add a $2 fee to each ticket sold, which goes to the Department of Revenue.
Developers who participate in entertainment district tax advantages may still participate in other available incentives.
“I think we’re in an economic recovery, and as people look for investment opportunities, this gives them another reason to look at Corinth,” White said.