Commission recommends five year tax exemption
YERINGTON — Lyon County commissioners have recommended a Fernley manufacturing plant be granted a five-year, 50 percent personal property tax abatement.
A.R.E. Inc, a builder of camper shells and pickup truck bed covers, plans to lease a facility in Fernley. It has applied to the Nevada Commission of Economic Development for abatements of the state’s sales and use taxes, business taxes and personal property taxes and for a sales and use tax deferral.
The Commission of Economic Development approved all the requests except a 10-year, 50 percent personal property tax abatement, deferring any decision until the county commissioners had an opportunity to consider a recommendation. The state makes the final decision, but affected local governmental entities are asked to comment.
With the annual depreciation of personal property, Commissioner David Fulstone pointed out the major portion of the abatement occurs during the first five years and recommended the five-year term.
“It is a compromise. Although I am not great supporter of tax abatements, I know it is a tool to get businesses involved. (Five years) is the foreseeable future in budgeting matters and it still supplies them with a pretty large tax abatement,” he said. “I’m not happy with the way the program is, but for us to change it is not to go to the Commission on Economic Development. It is going to have to go to the legislature.”
Commissioner Leroy Goodman, also a member of the Commission of Economic Development, agreed.
“It is fair and still shows a statement that we are concerned with tax abatements and also like to see properties like this come in to the county.”
The total property tax abatement for five years would total approximately $35,000. A full 10-year abatement would total $58,298. The school district will lose 48.7 percent, the county 40.1 percent and the city of Fernley 4.5 percent of the tax revenue.
The development commission will make a final decision in February.
According to Goodman, A.R.E. Inc. is a relatively small company located in Maslyn, Ohio, and is ranked as one of the top five in the industry. Looking for a West Coast site, its plans call for an $8 million investment. The average wage of the proposed 152 employees will be $15.15 per hour plus full benefits.