Summary of City of Flagstaff Auto Industry/Auto Park Stimulus

June 2011

 New Auto Brands

In the next two years, any auto dealer who offers a new product line (not a new vehicle model, but a new brand), provides new employment paying at least $13.01 per hour plus benefits, and additional sales tax beyond the dealer’s recent three year average, would receive a sales tax rebate equivalent to a projected four-year accumulation of General Fund sales-tax (1%) on that new product-line.

 As a condition of the rebate, the auto dealer must agree to continue to operate within the City of Flagstaff for a period of time equal to twice the time it took to generate the rebate total.

 The proposal is open to any current dealer who may seek to offer an additional brand on their existing lot.  The incentive is also available to existing dealers to relocate to the Auto Park to create greater ability to comparison shop, which generally increases sales volumes for all dealers.  Any new or existing dealer may choose to open a dealership with a new brand on a new lot inside or outside of the Auto Park and receive the sales tax rebate.