PRINCETON — The Gibson County Council on Tuesday approved a six-year personal property tax abatement on Toyota Motor Manufacturing Indiana's planned $785 million equipment investment for the local plant.
The tax phase-in incentive has no impact on local real estate property taxes paid by the company for the total $1.3 billion expansion/upgrades to the plant.
The $785 million in new equipment expands automotive technology capabilities for the local plant.
Tim Hollander with Toyota said the latest investment creates 550 jobs with the earning potential of up to $29 per hour.
Hollander said Monday night that the county would see more than $21 million in new tax revenue over the abatement period.
Greg Wathen, president and CEO of Economic Development Coalition of Southwest Indiana, said Gibson County's annual gross domestic product is about $2.9 billion, and the manufacturing sector accounts for $1.5 billion of that total.
Commissioners Steve Bottoms said the project is a win for the county, county assessor Kim Minkler and North Gibson School Corp. Supt. Brian Harmon said they've reviewed the proposed abatement incentives and see no negative impact.
Toyota initially requested a 10-year abatement but amended the request to a six-year period, which dovetails with the expiration of the Toyota Tax Increment Finance District.
County officials say they want the Gibson County Redevelopment Commission to commission a comprehensive study of the changes in the county's tax base in the years following the expiration of the Toyota (Patoka-Union Township) TIF district.