Texas city to bid Samsung huge property tax breaks to build $17 billion chip plant

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The city of Taylor, Texas, which is one of two in the state being considered by Samsung Electronics (OTC: SSNLF) for a $17 billion chip facility, intends to offer large property tax relief if picked by the South Korean tech giant.

Taylor is vying against Austin, Texas, for the plant, which is estimated to create approximately 1,800 new employments. Samsung (KS:005930) has also stated that it is investigating additional potential locations in Arizona and New York. Other potential venues have yet to reveal their tax advantages.

According to a proposed resolution posted on the city’s website, Samsung will be awarded a grant equal to 92.5 percent of assessed property tax for the first ten years, 90 percent for the next ten years, and then 85 percent for the next ten years for the land it will use.

Other measures include a 92.5 percent tax exemption for new property erected on the land for a period of ten years, as well as reimbursement for development review fees. The Taylor City Council and the Williamson County Commissioners will discuss the proposed resolution on Wednesday.