Texas city to offer Samsung large property tax breaks to build $17 billion chip plant
Reuters
Published Sep 06, 2021 01:06AM ET
Updated Sep 06, 2021 07:06AM ET
(Reuters) - The city of Taylor, Texas - one of two locations in the state under consideration by Samsung Electronics (OTC:SSNLF) for a $17 billion chip plant - plans to offer extensive property tax breaks if it is chosen by the South Korean tech giant.
Taylor is competing with Austin, Texas to land the plant which is expected to create about 1,800 new jobs. Samsung (KS:005930) has also said it is looking at other potential sites in Arizona and New York.
Other potential sites have yet to disclose planned tax breaks.
A proposed resolution posted on the city's website shows that for the land Samsung will use, it is set to be offered a grant equivalent to 92.5% of assessed property tax for 10 years, 90% for the following 10 years and then 85% in the 10 years after that.
Other measures include a 92.5% tax waiver on new property built on the site for 10 years and the repayment of development review costs.
The proposed resolution will be considered on Wednesday by the Taylor City Council and Williamson County Commissioners.
The Taylor site is located about 25 miles (40 kilometres) from Austin. It is about 1,187.5 acres (4.81 square kilometres)in size, much bigger than the Austin site. Samsung last year purchased more than 250 acres in Austin, which is in addition to 350 acres it owns that includes its sole U.S. chip factory.
If Samsung decides on Taylor, it plans to break ground by the first quarter of next year with production due to start by end-2024, a document previously filed with Texas state officials has said. [nL4N2OS0M5
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Written By: Reuters
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