By Gary Lloyd
TRUSSVILLE — The Trussville City Council last week approved a resolution amendment to the tax abatement for System Controls and Reed Hene Properties in the Trussville Industrial Park.
The city originally approved of System Controls’ and Reed Hene Properties’ original application to local granting authority for the abatement of taxes Dec. 5, 2012.
In January, the companies amended the applications after discovering additional costs that needed to be included in the project estimates, so the companies adjusted the estimated amount of investment by the companies in the 2012 project.
System Controls’ second amended application reflects that the placed in service date for the 2012 project was Dec. 31, 2013 and the total capital investment by the company in the 2012 project was 3,392. Reed Hene Properties’ second amended application reflects that the placed in service date for the 2012 project was Dec. 31, 2013 and the total capital investment by the company in the 2012 project was ,682,363.
Trussville City Clerk Lynn Porter said this is a 10-year ad valorem tax abatement of the non-education ad valorem tax from 2013 when it was originally approved, and sales tax abatement on building materials and equipment on the non-education sales tax. The total general sales tax rate is 4 percent, the machinery sale tax is 1.5 percent and the ad valorem is 62.1 mills. The general sales tax rate to be abated is 3 percent, the machinery sales tax to be abated is 1 percent and the ad valorem tax to be abated is 22 mills.
“The general idea in Industrial Board tax abatements throughout the state is to encourage industry to locate in a particular area,” Porter said. “The incentive to the taxing entity is that the new industry will provide jobs, there will be business licensing, trickle down tax revenues with gasoline sales and food sales, and possibly general retail sales to employees, and after 10 years, all of the ad valorem tax.”
In other Trussville news, 18 residential building permits were issued in May, and 21 were issued in June.
“Our growth continues,” said Trussville City Councilman Anthony Montalto.
Contact Gary Lloyd at email@example.com and follow him on Twitter @GaryALloyd.