02/21/2017 - Laserfiche WebLink

Home Browse Search

*Sum of 12th Day Count for Each Month Divided by 3 "Total Employees Lisled for Quarter With respect to project capital investment the project has involved tens of millions of dollars in improvements and equipment, as anticipated. Based upon submitted employment reports and verified items, staff has determined that INEOS has met minimum scoring requirements to maintain the tax abatement for the 2016 tax year. As shown in the table on attachment 5, INEOS' score for the 2016 tax year is 85 points. This is five points less than each previous year's points and four points above the minimum 81 points required to maintain its approved tax abatement (see attachment 6). For 2016, the reduced points are due to the loss of employees in the 4t1i quarter as INEOS moved to shut down its operations. As anticipated in the INEOS tax exemption application, the majority of the project's assessed value consists of tangible personal property in the form of plant equipment. According to the Property Appraiser's staff, INEOS' ad valorem tax bill for 2016 was $433,560.28 and the value of the ad valorem tax exemption not included on that bill (savings to INEOS) was $259,676.24. In 2015, the tax bill was $471,929.22 and savings to INEOS was $308,145.81. The 2016 figures reflect a decrease in assessed value associated with depreciation of equipment, land, and assets and also a 10% percent decrease in the allowed tax exemption amount. Staff has confirmed that the 2016 real property and tangible property taxes have been paid. With respect to the Economic Development Ad Valorem Tax Exemption agreement, that agreement allows for the property to be transferred to a new owner provided proper notice is given to the County. That agreement also contains provisions regarding violations of abatement requirements, providing the County with the ability to: a. Revoke or revise the exemption, effective as of the date of such action, or b. Revoke or revise the exemption, effective as of the date of violation of the Commitment. In addition to revoking or revising the exemption, the Board may simply suspend the exemption in its current year (year five), keeping open to itself the possibility of re -instating the abatement schedule for the facility in subsequent years if a qualifying plant owner/operator restarts the plant and provides jobs at the same number and wage level as INEOS. Even though INEOS shut down its operations, that process was not completed until late 2016/early 2017. Because INEOS maintained eligible high wage jobs at its facility for 2016 and because INEOS exceeded the minimum scoring requirements for qualification for the year 2016 tax abatement, it is C:\Users\GRANIC—I\AppData\Ucal\Tctnp\BCL Teclmologies\easyPDF 7qBCL@18051225\@BCL@18051225.docx 3 P36 2016 INEOS Wage and Employment Levels Average # of Total # of Average Wages Per Quarter Total Gross Wages Employees Listed on Employees Listed Employee (Total Quarterly Report* on Quarterly Gross Wages/# of Report" Employees) 1 $1,001,850.31 52 52 $19,266.35 2 $1,090,600 78 53 56 $19,47501 3 $1,383,676.62 54 54 $25,62364 4 $1,068,251.41 41 53 $20,155.69 Total/Average $4,544,379.12 50 53.75 $84,52069 *Sum of 12th Day Count for Each Month Divided by 3 "Total Employees Lisled for Quarter With respect to project capital investment the project has involved tens of millions of dollars in improvements and equipment, as anticipated. Based upon submitted employment reports and verified items, staff has determined that INEOS has met minimum scoring requirements to maintain the tax abatement for the 2016 tax year. As shown in the table on attachment 5, INEOS' score for the 2016 tax year is 85 points. This is five points less than each previous year's points and four points above the minimum 81 points required to maintain its approved tax abatement (see attachment 6). For 2016, the reduced points are due to the loss of employees in the 4t1i quarter as INEOS moved to shut down its operations. As anticipated in the INEOS tax exemption application, the majority of the project's assessed value consists of tangible personal property in the form of plant equipment. According to the Property Appraiser's staff, INEOS' ad valorem tax bill for 2016 was $433,560.28 and the value of the ad valorem tax exemption not included on that bill (savings to INEOS) was $259,676.24. In 2015, the tax bill was $471,929.22 and savings to INEOS was $308,145.81. The 2016 figures reflect a decrease in assessed value associated with depreciation of equipment, land, and assets and also a 10% percent decrease in the allowed tax exemption amount. Staff has confirmed that the 2016 real property and tangible property taxes have been paid. With respect to the Economic Development Ad Valorem Tax Exemption agreement, that agreement allows for the property to be transferred to a new owner provided proper notice is given to the County. That agreement also contains provisions regarding violations of abatement requirements, providing the County with the ability to: a. Revoke or revise the exemption, effective as of the date of such action, or b. Revoke or revise the exemption, effective as of the date of violation of the Commitment. In addition to revoking or revising the exemption, the Board may simply suspend the exemption in its current year (year five), keeping open to itself the possibility of re -instating the abatement schedule for the facility in subsequent years if a qualifying plant owner/operator restarts the plant and provides jobs at the same number and wage level as INEOS. Even though INEOS shut down its operations, that process was not completed until late 2016/early 2017. Because INEOS maintained eligible high wage jobs at its facility for 2016 and because INEOS exceeded the minimum scoring requirements for qualification for the year 2016 tax abatement, it is C:\Users\GRANIC—I\AppData\Ucal\Tctnp\BCL Teclmologies\easyPDF 7qBCL@18051225\@BCL@18051225.docx 3 P36