By Jonathan - August 1st, 2014, 6:41 pm
- August 1st, 2014, 6:41 pm
#59020
They will pay taxes, but I believe the tax credit is effectively the same as the increase in taxes that they will pay after spending the $50 million. So for three years the park will basically be paying taxes as though it had not invested the $50 million, but will start paying the higher rate after 3 years. The political theory behind it would be that, if you believe that the park would not make the investment without incentives (which is dubious), it's a gain for the city after the 3 years is up.
arby wrote:We knew about the tax incentives already. That was announced in the council meeting last year. Carowinds went to Charlotte asking for tax incentives that are reportedly worth nearly 1 million a year for three years. My understanding isn't that Carowinds is getting money from them, but rather that Carowinds won't have to pay them any taxes for the next three years effectively saving them around $3 mil.
BTW, that happens all the time all over the place. Cities/counties/areas give tax incentives for businesses to open in their area and bring jobs. It's not cash they pay out to those businesses but rather the lack of local taxes - sales taxes, property taxes, etc that the businesses have to pay.
I wouldn't surprise me to hear the local news report the information incorrectly. They do it all the time.
They will pay taxes, but I believe the tax credit is effectively the same as the increase in taxes that they will pay after spending the $50 million. So for three years the park will basically be paying taxes as though it had not invested the $50 million, but will start paying the higher rate after 3 years. The political theory behind it would be that, if you believe that the park would not make the investment without incentives (which is dubious), it's a gain for the city after the 3 years is up.
