A basic EDC concept: All taxing entities can exempt a new industry for up to 10 years from property taxes except for the School District. So as an example, lets say a business prospect is considering locating to Commerce or possibly some neighboring communities and that business will add $40 million of property tax value (roughly the value of an aluminum plant when it opened) to the tax roll.
Commerce ISD Tax Rate: $1.58; Taxes= $632,000 per year
Greenville ISD Tax Rate: $1.17; Taxes= $468,000 per year
Sulphur Springs ISD Tax Rate: $1.36; Taxes=$544,000 per year
Mount Pleasant ISD Tax Rate: $1.23; Taxes=$492,000 per year
If those rates remained the same, over 10 years, that business would pay $880,000 to $1.6 million more in property taxes to be located in Commerce. What do you think, do industries look at tax rates when deciding where to locate? Would you?
Yes, other factors are involved but from a property tax stand point, it makes it hard to compete!
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