The city of Taylor, Texas — one of two state locations under consideration by Samsung Electronics for a $17 billion (approximately Rs. 1,24,200 crores) chip factory — plans to offer expanded property tax benefits if 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 has also said it is looking at other potential locations in Arizona and New York.
A proposed resolution posted on the city’s website shows that for the land Samsung will use, it will receive a subsidy equal to 92.5 percent of the property tax for 10 years, 90 percent for the next 10 years and then 85 percent in the next 10 years.
Other measures include a 92.5 percent tax exemption on new properties built on the site for 10 years and the refund of development appraisal costs.
The proposed resolution will be discussed by Taylor City Council and Williamson County Commissioners on Wednesday.
The Taylor site is about 25 miles from Austin. It is approximately 1,187.5 acres (4.81 square kilometers) in size, much larger than the Austin site. Samsung bought more than 250 acres in Austin last year, in addition to the 350 acres it owns, including its only US chip factory.
If Samsung chooses Taylor, it plans to do groundbreaking work in the first quarter of next year and production should start in late 2024, a document previously filed with Texas state officials said.
© Thomson Reuters 2021