Big tax coming due on stores in Florence historic buildings

by Mark Cowling | Florence Reminder & Blade Tribune

Tenants in two town-owned historic buildings could see their rent double if a special excise tax on government property comes due.

An eight-year abatement period on the tax expired Feb. 9 on the Silver King Hotel. The town didn’t abate the tax on the Brunenkant building because town staff believed it was exempt from the tax.

Known as the Government Property Lease Excise Tax, or GPLET, it is a redevelopment tool to reduce a building’s operating costs by replacing property tax with an excise tax on gross square footage. The tax may be used for up to 25 years and may be abated for the first eight years after a certificate of occupancy.

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