Title
Receive a presentation from state and local agency representatives on qualified Opportunity Zones.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive a presentation from state and local agency representatives on qualified Opportunity Zones.
SUMMARY/DISCUSSION:
Supervisor Luis A. Alejo requested a presentation on qualified Opportunity Zones. An Opportunity Zone is a population census tract that is a low-income community located within economically distressed areas that is designed to spur economic development and job creation by providing tax benefits to investors. The qualified Opportunity Zones are good for ten years.
There are 879 census tracts designated as qualified Opportunity Zones in California. There are nine census tracts designated as qualified Opportunity Zones in Monterey County: 1) Five in the City of Salinas, 2) One in the City of King, 3) Two in the City of Seaside, and 4) One in the City of Marina. (Attachment-Map of Monterey County Opportunity Zones).
The Tax Cuts and Jobs Act of 2017 established Opportunity Zones to spur investment in distressed communities. Opportunity Zones are designed to spur growth in low-income communities by encouraging reinvestment of capital gains into certified Opportunity Funds. Investments made by individuals through qualified Opportunity Funds in these zones would be allowed to defer or eliminate Federal taxes on capital gains. Under the Opportunity Zone program, investors may generally defer tax on prior capital gains for a limited period, provided that such gain is reinvested in a qualified Opportunity Fund.
In March 2018, the Governor's Office put a preliminary recommendation of tracts out for public comment, and then received 2,684 comments regarding 1,518 individual census tracts and 221 comments from individuals, cities, counties, legislators, and organizations.
Following this comment period, the Governor's Office designated 879 qualified Opportunity Zone census tra...
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