FeedsTownship uses tax programs to lure, keep local business
In order to keep a growing local manufacturing industry, Plymouth Township officials are offering tax relief to manufacturing companies in order to encourage expansion and development.
Tax abatements are given to new manufacturing companies coming into Plymouth Township or existing manufacturing companies who upgrade by adding new equipment, work space or other forms of growth.
“Tax abatements are important if they help keep business here,” said Plymouth Township Clerk Marilyn Massengill who added the township has recommended more than 10 local businesses for tax abatements in 2006. The final decision on who receives abatements is left to tax officials in Lansing.
The business applying for the abatement must manufacture some sort of product. Commercial businesses and homeowners are not eligible for the tax break. Secondly, the business must apply for the abatement with the township within a six-month window of the business expansion.
“Tax abatements are absolutely necessary in order for the township to compete to get businesses and the revenue they bring in,” said Bill Pratt, president of the Plymouth Community Chamber of Commerce.
Pratt believes the tax revenue lost on the new equipment purchased by local manufacturing companies or their expansion is more than recovered through the money the company spends in Plymouth Township.
“We have to be able to retain and recruit business,” he said.
According to Joe Baker, chief financial officer with Moeller Manufacturing, tax abatements aren’t just about keeping business in Plymouth Township, but more about helping local manufacturers keep pace in a global economy.
“We have to be able to stay competitive with out of state and international competition in a growing, global marketplace,” said Baker whose company is currently going through the abatement process with Plymouth Township.
The abatement will only apply to the $3 million dollars of new equipment the company recently bought, meaning Moeller will still pay taxes on older equipment.
Baker said their facility in Plymouth Township has grown immensely since the metal stamping company opened in 1991 including growing to 130 employees. Moeller applied for the abatement to free-up money to hire and train new employees. Many of whom may be residents of Plymouth and Plymouth Township.
“The tax break will help us to bring on more people and employ more residents,” said Baker who believes the employees would support the area with their patronage, adding to the tax roll.
“Even the non-residents we hire will spend money in the township by shopping in local stores and eating in local diners. Somemay even decide to moveto Plymouth Township”, Baker said.
Whether or not Moeller receives the tax abatement, Baker said the company has made a commitment to stay in Plymouth Township.
“We’re not placing one city against the other, but we are definitely staying here.”
