CEIDC Approaches County To Consider Tax Abatement For Potential Car Dealership

By Alton Porter
Courier Reporter
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As a result of the diligent work of Flint Brent, executive director of the Crockett Economic and Industrial Development Corporation, the City of Crockett has the potential for a new car dealership to be located here.

To help in attracting the unnamed dealer to the city, Brent asked county officials to abate a portion of the taxes that would be levied against the business during its first six years of operation in the city.
Brent submitted the request to the county commissioners at a meeting of the commissioners court on Tuesday, Aug. 23.

Houston County Judge Erin Ford said the matter would have to be placed on the agenda for the next commissioners court meeting and voted on at that meeting.

"We have a potential for a new auto dealership here in the county, specifically the City of Crockett," Brent told the commissioners. "And what I'm asking for is permission to offer property tax abatements to the facility.

"Now, I calculated out – this is on 2015-2016 fiscal year tax rates for the county, the school district and the hospital district," Brent said referring to a document he had prepared and distributed to the commissioners.

"Annually, it would be about $95,200 once they're paid in full – that they're paying for the three entities," he said. "Specifically, $25,200 (for the county) on a $5 million facility. The one in Jacksonville (that he visited) was like $8 million.

"This one might be smaller, it might be the same size. I have no idea. But, this is just an extimated calculation of what potential property taxes are. Also, for the county, you get inventory taxes, and you get the registration taxes, which the city does not get. So, that's what I'm asking for.

Dr. John McCall, who was present at the meeting, told Brent that Willie Josey, the owner of Josey's Auto Parts, told him a few months ago he would be willing to sell his facility to a dealer willing to locate an auto dealership in Crockett. And Brent said he had shown that facility, as well as several other properties, to the potential new dealership owner.

"I'm just asking for tax abatements right now...," Brent said.

According to Brent's calculation – based on the 2015-2016 county tax rate of 50.4 cents per $100 of assessed valuation – a new $5 million development would pay the county $75,600 over the next six years.

Under the proposed abatement the county would receive no taxes from the new dealership in year one, $5,040 in taxes in year two and $10,080 in year three. In the fourth year, the county would receive $15,120 in taxes from the dealership and $20,160 in the fifth year. The dealership would pay its full amount of taxes ($25,200) beginning in the sixth year of its operations.