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Texas city to offer Samsung large property tax breaks to build $17 billion chip plant

Published 09/06/2021, 01:06 AM
Updated 09/06/2021, 07:06 AM
© Reuters. FILE PHOTO: The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

© Reuters. FILE PHOTO: The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

(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.

© Reuters. FILE PHOTO: The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

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

Latest comments

The Samsung wed site has a statement on it saying it eliminated the Texas site as a result of the ******bill it passed say the company support women health and their choice in determining what is best for them.
Stop murdering children.
The irony is they will essentially not be paying meaningful property taxes for 20 years and 50% of the highest paying jobs will go to foreign nationals. Seem about right for Texas these days.
Not to mention the property in the immediate area will have higher property taxes
Only issue is that Texas is a flat and very boring place. Arizona much better.
Hey everyone, Texas will be adding 1800 new high paying jobs, growing it's tax base and creating even more secondary jobs. Housing prices will rise, additional property taxes will increase and schools will collect more taxes. Keep attracting new business in Texas, USA.
No thanks. With woman's abortion rights being taken away Texas companies should be leaving the state not adding companies. Texas is a dictatorship state.
if someone kills a pregnant mother they are charged with TWO murders but ***is ok.
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