1/2 sounds like part time.
Fabrication company gets tax abatements for move to Stafford
Submitted by Howard Owens on November 8, 2011 - 4:25pm
A service company from Bethany will receive $45,956 in tax abatements to assist in its expansion and relocation to Stafford, announced the Genesee County Economic Development Center today.
Adams Welding and Fabrication is constructing a new 5,616-square-foot building at 5782 Main Road, Stafford (next to the Batavia Party House).
The project will create half a job and retain one.
Adams is investing $175,000 in the project.
The estimated PILOT (payment in lieu of taxes) on the project is $39,131. Adams will also receive a sales tax exemption on construction materials of $5,200 and a mortgage tax exemption of $1,625.
The company is also seeking $25,000 from GCEDC's revolving loan fund.
The direct economic benefit to the community is estimated at $855,000 ($18.61 for every $1 of abatement).
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November 8, 2011 - 6:59pm
#3
November 9, 2011 - 3:00am
#4
I have a question, since I do not know what a tax abatement is or how it works, could someone who knows about them please explain?
November 9, 2011 - 8:34am
#5
There are different kinds of tax abatements.
A sales tax abatement means the company building something doesn't have to pay sales tax on the materials for construction of the building. No sales tax on, say, pipes for plumbing or fixtures for lights or on dry wall.
A property tax abatement, usually the most significant, comes in the form of a PILOT, or payment in lieu of taxes. The company is making an investment in the community, so to speak, by growing/expanding/starting rather than paying taxes on the INCREASED value of the property.
Let's say a company buys an acre of land valued at $10,000. The building it constructs increases the assessment to $100,000. During the first two years of the PILOT, the company would pay property taxes only on that $10K original value. It would receive an abatement on that other 90 percent of value. In years three and four, it would pay tax on 20 percent of the increased assessment -- on $18,000, making the total taxable assessment $28,000 ... and it goes up from there.
Usually, the PILOT isn't for 100 percent of the increase in value. It might start out only sixty percent of the increased assessment, which is the case here.
WHERE is the benefit to GENESEE COUNTY?? Building a structure that costs less than many homes and moving the business from one town to another is a benefit to the community (WHAT community?) of 850k?
Where is the benefit to Bethany?
850K?? Come on now......
And 1/2 job created. Whatever than means.