Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By Alex Ebert
Michigan was set to pay Amazon.com Inc. $4 billion in tax incentives to bring the retail giant’s projected $5 billion second headquarters and 50,000 employees to Detroit.
Though it’s out of the running, the state released its incentives package May 25, led by a pledge to create couture “Renaissance Zone” legislation that would have provided a 30-year real and personal property tax rebate. Also included in the legislation would have been a promise of zero city income tax liability, zero utility tax, and effective property taxes “lower than the established rate in any major U.S. city” for 30 years.
The state had previously refused to provide the incentive agreement, pointing to a confidentiality agreement, but released the details without announcement on May 25. The incentives are believed to be the largest ever offered by the state, including its unsuccessful 2017 bid for a Foxconn Technology Group factory.
Also included were the following incentives:
Property assessments typically make up the greatest share of state and local taxes a company pays. But tax breaks can change that.
For example, abatements take a variety of forms, permanent and temporary, and they can be affected by not reassessing for new improvements or by discounting or suspending payments. Such incentives are a key component of bids from the 19 cities in the U.S. and one in Canada still in the running to become another headquarters for the Seattle-based company.
In the first round of bids in which Amazon pared suitors from more than 200 down to 20, Michigan’s incentive package is far from the largest offered. New Jersey, a finalist, has put at least $7 billion on the table. However, Columbus, another finalist, offered $2.6 billion in the first round.
To contact the reporter on this story: Alex Ebert in Columbus, Ohio at email@example.com
To contact the editor responsible for this story: Ryan C. Tuck at firstname.lastname@example.org
Copyright © 2018 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)