Texas City to Offer Big Tax Relief to Samsung for Building $ 17 Billion Chip Plant

The Samsung logo is seen in a building during the Mobile World Congress in Barcelona, ​​Spain, on February 25, 2018. REUTERS / Yves Herman

September 6 (Reuters) – The city of Taylor, Texas, one of two locations in the state that is considering Samsung Electronics (005930.KS) for a $ 17 billion chip plant, plans to offer large exemptions property taxes if you choose South Korean technology giant.

Taylor is competing with Austin (Texas) to land the plant, which is expected to create about 1,800 new jobs. Samsung has also said it is looking at other potential locations in Arizona and New York.

Other potential sites have not yet revealed planned tax breaks.

A motion for a resolution posted on the city’s website shows that for the land that Samsung will use, a subsidy equivalent to 92.5% of the property tax assessed for 10 years is offered, 90% for the next 10 years. and then 85% 10 years later.

Other measures include a 92.5% tax exemption on new property built on site for ten years and a refund of development review costs.

The motion for a resolution will be considered Wednesday by the Taylor Business Council and Williamson County commissioners.

Taylor’s place is about 40 miles from Austin. It has an area of ​​about 1,187.5 acres (4.81 square kilometers), much larger than the site of Austin. Samsung last year bought more than 250 acres in Austin, which adds to the 350 acres it owns, which includes its only chip factory in the United States.

If Samsung decides on Taylor, it plans to start the first quarter of next year with production set to begin in late 2024, according to a document previously presented to Texas state officials.[nL4N2OS0M5[nL4N2OS0M5[nL4N2OS0M5[nL4N2OS0M5

Report by Joyce Lee; Edited by Edwina Gibbs

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Credit – https://www.reuters.com/technology/texas-city-offer-samsung-large-property-tax-breaks-build-17-bln-chip-plant-2021-09-06/