Author Topic: Tesla Says Texas’ High Property Taxes are ‘Barrier’ to Moving Here  (Read 294 times)

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Offline Elderberry

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Texas Scorecard By Jacob Asmussen June 26, 2020

Democrat local officials across the state have continually suffocated citizens with heavy taxes, all while giving special deals to large businesses like Tesla.

AUSTIN — As the electric vehicle company Tesla considers moving from California and building a massive “gigafactory” in southeast Austin, corporate executive Rohan Patel spoke to the Travis County Commissioners Court on Tuesday about what their potential relocation could mean for local citizens.

“Compared to most other states, you’ve got high property taxes in Texas sometimes presenting barriers to large investments,” Patel said. “That’s especially true for businesses like Tesla with extremely high machinery and equipment costs.”

For context, Patel was before the commissioners to discuss a controversial potential deal in which Tesla would receive special tax abatements from the county. Numerous citizens testified about the proposal, with many against it.

During the deal discussion, though, Patel observed an important and accurate fact worth zooming in on about current life for locals and those across the state: property taxes in Texas are suffocating citizens and businesses.

In 2020, Texans pay the third-highest property taxes in the nation behind only Illinois and New Jersey; locally, Austin and Travis County governments charge citizens debilitating tax bills as well.

More: https://texasscorecard.com/local/tesla-says-texas-high-property-taxes-are-barrier-to-moving-here/

Online EdinVA

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lol.. Texas does not have income tax right?

« Last Edit: June 28, 2020, 12:51:14 PM by EdinVA »

Offline Elderberry

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No State Income Tax. Companies can shelter incomes, but how do they shelter the value of their Real Estate and Equipment to reduce Property Taxes?

Online EdinVA

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No State Income Tax. Companies can shelter incomes, but how do they shelter the value of their Real Estate and Equipment to reduce Property Taxes?
Well, Tesla can move to Virginia and pay income and property taxes...
Tesla has no plan or ability to recycle the batteries so someone has to pay for that kind of thing.

Real Estate and equipment is depreciated and the taxes adjusted accordingly...  I am all for business, but we need to stop these companies from dictating terms.
They will get a 5 year deal of no taxes then move after the 5 years.... They will get no sympathy form me.

Offline Hoodat

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No State Income Tax. Companies can shelter incomes, but how do they shelter the value of their Real Estate and Equipment to reduce Property Taxes?

Equipment is expensed/depreciated over time.  Not much to tax there.  Real estate taxes may be higher in Texas, but the cost of purchasing property is much lower.  The savings in purchase costs are several times greater than the higher tax costs.

On top of that, Texas has no corporate tax while California has a rate of 8.8%.  Tesla is blowing smoke here.  There is really no comparison between the two.  They would be idiots to remain in California.
If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.

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Online truth_seeker

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Equipment is expensed/depreciated over time.  Not much to tax there.  Real estate taxes may be higher in Texas, but the cost of purchasing property is much lower.  The savings in purchase costs are several times greater than the higher tax costs.

On top of that, Texas has no corporate tax while California has a rate of 8.8%.  Tesla is blowing smoke here.  There is really no comparison between the two.  They would be idiots to remain in California.
"God must love the common man, he made so many of them.�  Abe Lincoln

Online truth_seeker

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My old Calif. Fortune 500 employer eventually moved Hq to TX for a variety of reasons.

My older employer moved to TX nearly 50 years ago.

One factor over time, was higher property taxes in TX, the subject of the article.

Don't be surprised when TX negotiates what it takes to get innovative high tech Tesla.

A huge offsetting cost to Tesla might be higher property taxes for their employees, which they will likely "equalize" for a time.

CA property taxes are limited to one percent of value at the time of purchase. Proposition 13.

"God must love the common man, he made so many of them.�  Abe Lincoln

Offline SZonian

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They're trying to "encourage" local politicians grant them subsidies for tax relief...

CA will soon amend Prop 13 (via Proposition) and businesses will see their property tax rates skyrocket as they will no longer be protected by Prop 13.

Tesla doesn't really have a choice here, just move and accept that "raise" all by itself.
Throwing our allegiances to political parties in the long run gave away our liberty.

Online Cyber Liberty

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Nevada may turn out to be a better choice.
We need to re-coin the expression, "Press Bias" to "Media Bigotry."
I will NOT comply.
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Offline IsailedawayfromFR

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Equipment is expensed/depreciated over time.  Not much to tax there.  Real estate taxes may be higher in Texas, but the cost of purchasing property is much lower.  The savings in purchase costs are several times greater than the higher tax costs.

On top of that, Texas has no corporate tax while California has a rate of 8.8%.  Tesla is blowing smoke here.  There is really no comparison between the two.  They would be idiots to remain in California.
Nah, this is a tactic to get some tax concessions.

The bargaining chip in this poker game is now, not later on.
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Offline GrouchoTex

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They're trying to "encourage" local politicians grant them subsidies for tax relief...

CA will soon amend Prop 13 (via Proposition) and businesses will see their property tax rates skyrocket as they will no longer be protected by Prop 13.

Tesla doesn't really have a choice here, just move and accept that "raise" all by itself.

I believe this is true.
I also believe, being from the Lone Star State, that are property taxes are high.
We do not have a state income tax, however.

Offline Hoodat

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I believe this is true.
I also believe, being from the Lone Star State, that are property taxes are high.
We do not have a state income tax, however.

You also don't have a corporate income tax.
If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.

-Dwight Eisenhower-

Offline GrouchoTex

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You also don't have a corporate income tax.

Correct, corporate or personal state income taxes, neither one.


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