Commissioners take no action on tax breaks for company

By: 
Steve Lyon

The majority of residents who spoke at a public hearing on Monday to consider possible tax incentives for a company planning to relocate to Weiser were opposed to forgoing the revenue.
 A half-dozen residents spoke at the hearing held by Washington County commissioners. All but one said they did not support tax breaks for various reasons.  
 Weiser Area Rural Fire District Chief Tim Atwood said the  governing board of the fire district opposed tax breaks because of the loss of revenue.
 The company will place demands on fire and other government services without contributing any tax dollars to cover the expense for however long the waiver is in place, he said.
 Plus, the fire district needs to buy an expensive new engine in the future and cannot raise enough money to pay for it if taxes are not collected, he said.
 County resident and former commissioner Rick Michael said businesses that use services should pay their fair share.

He said various studies he has read purport to show that tax incentives don’t pay for themselves.
 Investing in infrastructure and schools and medical services is a better use of tax dollars than giving it to a business that was already going to build here.
 Companies look at the quality of services and amenities as important factors in relocating.
 “I’m in favor of economic development, but I don’t think tax incentives are the answer,” he said.
 Speaking in favor of tax breaks for the company, Rich Brooke, owner of Brooke Orchards, said getting a business to build in Weiser is a plus because it will bring new revenue to the Weiser area.
 He said the county will still collect sales taxes on employee spending and property taxes when they buy houses. The company will be here for the longterm and pump money into the local economy.
 Following the discussion, commissioners stated once again their support for granting AFC Finishing Systems some kind of property tax break for building a new manufacturing plant at the Weiser Industrial Park.
 Under Idaho law, the county can waive all or part of property taxes on a new or expanding business that qualifies for up to five years.
 Commissioners said they wanted to do more research on the number of jobs the company will create before finalizing tax incentives for the company. They plan to put the item back on the agenda at an upcoming commission meeting.
 Company officials previously said a dozen employees would relocate from California to Weiser and 20-25 employees would be hired locally, but the exact number of local hires may be more if some current employees don’t make the move.
 Commissioner Lisa Collini said the community will benefit with more jobs and more economic activity with the company moving operations to Weiser.
 While tax incentives may cost the county some revenue up front, the company and its employees will be paying local taxes in the future.
 “Any incentive we can give to get them here instead of Payette is in our best interest in the longterm,” she said.
 Weiser needs more jobs, commissioner Nate Marvin said, pointing out that his children had to leave the area to find employment. It’s been a long time since new industry showed up in the area and even if the company has 12 to 15 jobs, it’s a positive for the county.
 Marvin said the company and its employees will still be paying taxes in Weiser and buying homes here and registering cars here and boosting the economy.
 “I think it’s an opportunity to move us forward,” he said.
 The CEO of AFC Finishing Systems, which manufactures paint booths, powder coating ovens and powder coating finishing equipment, asked the county in February to waive the company’s taxes for the first five years the company is in business.
 The company purchased 67 acres of industrial-zoned property at the Weiser Industrial Park and plans to build a 60,000 square-foot plant and a 7,000 square-foot office building.
 The company’s investment in buildings and equipment in the county will total about $4 million, the owner said in a letter to the county.
 

Category:

Signal American

18 E. Idaho St.
Weiser, ID 83672
PH: (208) 549-1717
FAX: (208) 549-1718
 

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