School district OKS deal with Sam­sung

School district to let firm save $83.6 mil­lion over 13 years on chip fac­tory ex­pan­sion.

Austin American-Statesman - - FRONT PAGE - By Kirk Laden­dorf kladen­dorf@states­man.com Sam­sung’s Cather­ine Morse: Deal ‘a win-win’ for com­pany, school district.

Manor In­de­pen­dent School District ap­proved a tax lim­i­ta­tion agree­ment with Sam­sung Elec­tron­ics Co. that will en­able the chip-maker to save $83.6 mil­lion in school prop­erty taxes on big ex­pan­sion to its Austin chip fac­tory.

Manor In­de­pen­dent School District has ap­proved a tax lim­i­ta­tion agree­ment with Sam­sung Austin Semi­con­duc­tor that will en­able the chip­maker to save $83.6 mil- lion in school prop­erty taxes over 13 years on its ex­pan­sion to its Austin chip fac­tory.

Sam­sung ap­plied for the prop­erty tax lim­i­ta­tion to cover its pro­posed $4 bil­lion up­grade to its mas­sive fac­tory in North­east Austin, which lies within the Manor district.

The new agree­ment is sep­a­rate from a 2005 in­cen­tives agree­ment that the school district signed with the chip­maker shortly be­fore it be­gan to build its ma­jor fac­tory in Austin. The city of Austin and Travis County signed 20-year agree­ments with Sam­sung at that time and those re­main in place.

The agree­ment un­der Chap­ter 313 of the state tax code caps the value of Sam- sung’s lat­est plant in­vest­ment at $80 mil­lion a year for the school district’s main­te­nance and op­er­a­tions tax levy. That cap goes into ef­fect in 2015 and ex­tends through 2022.

The agree­ment, how­ever, does not af­fect the district’s tax levy for ser­vic­ing its debt.

Sam­sung es­ti­mates it has made about $11 bil­lion in plant in­vest­ments in Austin since 1996, with most of that coming

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