This is just another example of corporate welfare in this state and in the country all in the name of the economy and jobs. Yes the jobs are nice for Valencia county but the dollars do not stay in New Mexico as all the profits leave the state. I would assume that the workers at the Walmart Distribution Center turn around and spend their Walmart paychecks at a Walmart store. Why, because of the low prices. The low prices are great for middle and low income people, but buying at Walmart puts local businesses out of business. This is one of the reasons I do not shop or support Walmart.
agreed k! and yes the jobs are nice but property tax (approx $200K in 2004!) would benefit the county and school district too...and honestly, I think Walmart can apare that amount.
why aren't more people upset by this?
p.s. Intel doesn't pay property taxes either
Actually, I think Intel just started paying property taxes on the first round of incentives dating from the initial construction. You might recall the County (Sandoval) tried to use that trigger to collect taxes on everything since and that got the County Manager fired. What I like about the Intel deal is the land is all County, not City of Rio Rancho. Of course, they did throw a wad of cash to build the first high school. It's a good example of pros and cons. The plant itself is in the County. All of the impact, good and bad, traffic, spillover employment, downwind pollution, falls on Rio Rancho, Albuquerque, and Corrales.
Pro business is a code word for tax cheats and short term thinking, and not wanting to help their fellow humans out. I have seen what this view does to a place. I do not want it for any place and not for NM. They can stay away with their poison. Government are groups for the whole not only business. If business would behave they would not need watching.
um, Lebowski? since money can't be taken with you...what is the harm in caring about others?
Sounds like a good deal for Los Lunas and the State.
There is roughly 500 people employed there. Lets say at an average of $30k per employee (I am aware of there wages since my brother has worked there for 10 years and he averages about $39k per year).
500 * 30k = $15,000,000 in payroll
$15,000,000 in payroll at 4.9% State income Tax is $735,000 (3 times the property taxes that Wal-Mart would pay)
Now include all the other taxes for spending, property that those employees have purchased, cars, sales...etc...etc...etc.
Now include all the support jobs and offshoot business in support of that warehouse. And all the taxes those business pay.
OH...and 500 decent paying jobs.
Absolutely, I bet these guys are cheering that the labor unions put Hostess out of business...just like GM. Except...Obama isn't bailing out the twinkies.
A person earning $30K a year supporting a spouse and two children would pay no Federal Income Tax and no NM State Income Tax. Furthermore, assuming at least 60% of the income is spent on shelter, food, and payroll taxes then only $12K of spending would be subject to GRT. The first 5% of GRT goes to the state leaving maybe 2% for the local County and City between them. That yields $120K, less than half of your estimate of the annual taxes.
You have to be careful when you drink the Kool-Aid of the economic development folks, it's often laced with fuzzy math.