economyEconomic Development

Eligible Type A Projects
Developing Industries

building under construction

Manufacturing and industrial facilities. Photo by

How Type A Sales Tax Revenue Can Be Used

The Type A sales tax is primarily intended for manufacturing and industrial development. EDCs may use Type A revenue to fund land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects including:

  • manufacturing and industrial facilities, recycling facilities, distribution centers, and small warehouse facilities;
  • research and development facilities, regional or national corporate headquarters facilities, primary job training facilities operated by higher education institutions, job training classes, telephone call centers and career centers not located within a junior college taxing district;
  • certain infrastructure improvements that promote or develop new or expanded business enterprises;
  • aviation facilities;
  • commuter rail, light rail or commuter bus operations;
  • port-related facilities, railports, rail switching facilities, marine ports, inland ports; and
  • maintenance and operating costs associated with projects.

With voter approval, Type A EDCs may fund projects eligible under Type B without voting to abolish the Type A tax and impose the Type B tax. In this situation, a Type A EDC must publish notice of its intent to fund a Type B project, hold at least one public hearing and conduct a special election.

Type A EDCs also may seek voter approval to spend Type A sales tax funds to clean up contaminated property.

A Type A corporation cannot assume, or pay principal or interest on, debts that existed before voters agreed to establish the EDC.


This information should not be construed as, and is not a substitute for, legal advice.

Cities are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.