Apple may get 80% tax break to build new Texas campus

Posted:
in General Discussion edited January 2014


Travis County officials are debating whether to give Apple an 80 percent tax rebate worth $7.4 million if the company builds a proposed campus in Austin, Texas, which would add to two other multi-million dollar government subsidies already being offered to the tech giant.



Although a formal agreement has yet to be reached, conditions discussed during a closed session hearing on Tuesday may grant Apple an 80 percent tax incentive for 10 years -- with the possibility of a five year extension -- in return for choosing to build a new campus in Travis County that would create some 3,600 jobs, reports the Statesman.



The commissioners' closed-door discussion followed two hours of public comment where county residents voiced concern over the large subsidies Apple would receive.



Reports from other media sources on Thursday claimed that a deal has already been struck, however a representative from the office of County Judge Samuel T. Biscoe, the presiding officer of the Commissioners' Court, told AppleInsider that the matter cannot be decided outside the commissioners' purview.



As for what was discussed on Tuesday, Judge Biscoe said that the primary goal of negotiations is the creation of jobs for the "economically disadvantaged." The terms, which have yet to be solidified, call for the Cupertino, Calif., company to hire a number of workers who are currently unemployed, have gone through targeted job training or live in a poor area.



"We want to provide some opportunity for upward mobility but also give Apple employees that are qualified," Judge Biscoe said.



Pay scale for new hires are expected to be between $54,000 and $73,500, depending on qualifications and position.





Travis County Judge Samuel T. Biscoe. | Source: Statesman







The new campus is expected to nearly double Apple's job force in the area, which currently consists of customer support operations and staff. The proposed two-phase build out in Northwest Austin would begin with a $56.5 million, 200,000-square-foot office, followed by a $226 million office taking up as much as 800,000 square feet.



Apple is already in line to receive $8.6 million in tax breaks from the City of Austin and $21 million in an incentives package from the state-run Texas Enterprise Fund if the company builds the proposed campus.



Judge Biscoe's representative, reading from Tuesday's minutes, said that the Travis County matter will be handled "expeditiously," and will be the topic of a follow-up hearing on April 17.



[ View article on AppleInsider ]

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Comments

  • digitalclipsdigitalclips Posts: 15,030member
    Now they have to close that east Texas court house that so many people use to sue Apple!
  • old-wizold-wiz Posts: 188member
    Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.
  • alienzedalienzed Posts: 393member
    Seriously, what's with government giving tax breaks to the most profitable companies in existence?
  • d-ranged-range Posts: 396member
    That's just... Bizarre...



    Sometimes I just don't get the US and how they think about taxes. If you are filthy rich you can get a pass and pay little or no taxes, but if you are poor, you have to cough up double or triple the percentage



    Then again, by US standards I would probably almost be communist so maybe that's why I just don't get it. Anyway, I have a lot of respect for Apple because of their great products, but stuff like this doesn't help. $100 bln in the bank and still trying to get tax breaks left and right
  • winstein2010winstein2010 Posts: 401member
    Quote:
    Originally Posted by old-wiz View Post


    Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.



    I don't think Apple did not want to pay, I think it probably have to do with cities competing to get Apple to expand there.
  • applezillaapplezilla Posts: 941member
    I love Apple, but tax the Hell out of them.



    Tax corporations and the 1% to pay for the last 30 years of what they have been getting away with.
  • jack99jack99 Posts: 157member
    Quote:
    Originally Posted by d-range View Post


    That's just... Bizarre...



    Sometimes I just don't get the US and how they think about taxes. If you are filthy rich you can get a pass and pay little or no taxes, but if you are poor, you have to cough up double or triple the percentage



    Then again, by US standards I would probably almost be communist so maybe that's why I just don't get it. Anyway, I have a lot of respect for Apple because of their great products, but stuff like this doesn't help. $100 bln in the bank and still trying to get tax breaks left and right







    That's politics and business for ya. Government officials are always jockeying up to get businesses to set up operations in their state. You really can't blame Apple for making financially sound decisions. If you're expecting Apple to be a living being with a moral conscience, you'll find yourself severely disappointed when other companies from whom you buy stuff let you down.
  • ddawson100ddawson100 Posts: 372member
    Every municipality wants to fight for the jobs even if it means knee capping yourself on other things. The problem with being a good corporate citizen and paying this fee is that it's inconsistent with the mission to realize shareholder value.



    /philosophize ON. I mean, we all want a high stock value. Until we want good citizenship. We all want cheap products. Until we want better working conditions. It's good to be aware of these tensions. The choices we make at each step nudge us towards some result. It's good to be aware of that before we wake up and realize the results don't match our vision of the perfect world. /philosophize OFF
  • bspearsbspears Posts: 147member
    The tax breaks they get should be small compared to the tax revenues generated by the 3600 new jobs as well as the general stimulation of the local economy.
  • jack99jack99 Posts: 157member
    Quote:
    Originally Posted by bspears View Post


    The tax breaks they get should be small compared to the tax revenues generated by the 3600 new jobs as well as the general stimulation of the local economy.







    That is to be seen. But I'm sure policy experts are doing the math to figure out whether that's the case. If the Texas campus leads to enough students getting actual high-paying, long-lasting jobs, then sure.
  • suddenly newtonsuddenly newton Posts: 12,940member
    Is that what the haters mean by "Apple tax"?
  • mdriftmeyermdriftmeyer Posts: 6,752member
    The tax break is nothing to Apple. They already have a large investment in Austin. The real stink is whether Texas will retain Apple and not lose them.



    Apple can just as easily relocate it's Accounting and Support to another state.
  • quadra 610quadra 610 Posts: 6,491member
    This decade is so about Apple. No question.
  • lkrupplkrupp Posts: 3,657member
    Quote:
    Originally Posted by alienzed View Post


    Seriously, what's with government giving tax breaks to the most profitable companies in existence?



    Because Apple isn't required to locate any of its business in a particular city or even country. Did you notice the salary ranges for the new employees? What about the income taxes those employees will pay? What about the sales taxes that will be collected from increased sales of goods and services by those employees. Apple will be providing ALL of that revenue through the salaries it pays to its employees. I would venture to say that the boost to Austin's economy will more than offset any tax break they give to Apple. It's a total win for Austin, TX and its citizens.



    Finally this is still a free country. What would you say to total government regulation of prices, wages, your wages? What would you say to the government mandating where a company may or may not do business and how much profit it is allowed to make? Don't you realize that this has already been tried over and over for centuries only to fail miserably, resulting in utter economic chaos?
  • lkrupplkrupp Posts: 3,657member
    Quote:
    Originally Posted by AppleZilla View Post


    I love Apple, but tax the Hell out of them.



    Tax corporations and the 1% to pay for the last 30 years of what they have been getting away with.



    The "Occupy" movement makes me want to throw up. It's disgusting.
  • diplicationdiplication Posts: 582member
    Let me see, I can tax you at 20% of the full tax rate and you invest several hundred million dollars in my county. I benefit from added sales tax revenue as added payroll turns over several times in the local economy. Housing demands buoys up residential and commercial property values, on which I levy taxes. Or I let you go somewhere else, and I get nothing. Hmm, that's a difficult decision.
  • diplicationdiplication Posts: 582member
    Quote:
    Originally Posted by lkrupp View Post


    What about the income taxes those employees will pay?



    No state income tax in Texas, but there is property tax.
  • apple ][apple ][ Posts: 7,540member
    A 7.4 million dollar tax break is peanuts, considering that Apple is investing many hundreds of millions of dollars into that area and hiring many workers.



    Apple should not pay any more taxes than they are legally required to. If you don't like it, then change the law. Whining will get you nowhere. And Apple can certainly pick and choose between where they wish to expand their operations.



    I also pay as little taxes as I am required to in accordance with the law. When and if I become ridiculously rich, I will continue to pay as little in taxes as I can. If anybody here feels that taxes are too low, then you pay more out of your money. Either put up or shut up. Don't tell others what to do with their money.
  • frankiefrankie Posts: 289member
    Quote:
    Originally Posted by old-wiz View Post


    Considering how much cash Apple has, why don't they just be a good citizen and pay the taxes? Yes they are bringing something in, but they don't need the tax break.



    Welcome to 'greed is good', 'buy our congress', corporate-owned America...where you can buy both parties and the Repubs will lead the way!
  • frankiefrankie Posts: 289member
    Quote:
    Originally Posted by lkrupp View Post


    The "Occupy" movement makes me want to throw up. It's disgusting.



    Throw up? What are you a corporate whore? Seriously they are the only ones standing up for the rights of Americans in this country. The founding fathers would be standing there with them.
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