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The city of Williamstown in Grant County has agreed to give a biblically themed amusement park a property tax discount of 75 percent over the next 30 years. Mayor Rick Skinner said the offer is laid out in a memorandum of agreement that will be followed by a formal tax-increment financing deal with Petersburg-based Ark Encounters LLC in coming months.
Read more from The Herald-Leader.
It is a fallacy of thought to assume that any proposed business will actually materialize just because investors hire a spokesperson. This is particularly true in the amusement industry. These types of businesses have many choices about where to put their park. This is the reason those who assume that this company is willing and able to pay 100 percent of an enlarged property tax bill , that certainly will materialize if this project comes to fruition , are simply showing a lack of understanding about how these things get done. No large job creating business pays 100 percent tax rates early in the venture.
Forward thinking governmental entities that understand and value economic growth are proactive in attracting new businesses. Tax credits are the most tried and true method of incentivizing businesses to locate in any particular area.
While I also have no interest disgusting the current budget crisis... I will make note that I believe we would be in much better position if our politicians had a basic understanding of how businesses operate. I've no doubt that we have many in washington d c do not understand the difference between a subsidy and a tax incentives.
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