The Briefing Room
State Chapters => Texas => Topic started by: Elderberry on June 28, 2020, 04:16:08 pm
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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.â€
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/ (https://texasscorecard.com/local/tesla-says-texas-high-property-taxes-are-barrier-to-moving-here/)
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lol.. Texas does not have income tax right?
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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?
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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.
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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.
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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.
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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.
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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.
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Nevada may turn out to be a better choice.
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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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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.
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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.
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You also don't have a corporate income tax.
Correct, corporate or personal state income taxes, neither one.