"My Town and Yours" Thoughts and Observations of Mark Lange
Generally a Good Deal
by Mark Lange,posted Aug 26 2013 6:14AM
The Vincennes City Council will consider a Tax Abatement for equipment recently installed at the Shott-Gemtron Plant on the city's northside. This will most likely be a non-controversial motion, passed quickly, and set to help the local plant quickly. As many of you know, abatements allow businesses who bring jobs to the community, save property taxes for a period of time - usually 100% savings the first year, 90% the second year, 80% the third year and so on until the full 100% of property taxes on the equipment become due on the tenth year.
Such abatements don't cut current property taxes, they just don't add new property to the books at full value. And the jobs these businesses bring do put money back into the economy immediately and usually for a long time.
We get all excited about new businesses coming to town, but we must continue to make doing business in our town attractive to those businesses already operating here. The City Council will do that at their meeting tonight for Shott-Gemtron - and they should.