Saturday, February 6, 2016

Slow Saturday Special: TIF in Walpole

Who could po$$ibly be angry about it?

"Walpole offers tax break to Siemens" by Johanna Seltz Globe Correspondent  January 30, 2016

Walpole officials this week authorized a tax break to Siemens if the company agrees to invest around $300 million to expand its medical diagnostics factory in the town.

The offer from Walpole includes a reduction in property taxes by an average of 75 percent over 20 years if the international company expands the manufacturing plant and brings in 400 new jobs.

The tax break — officially known as a Tax Increment Financing agreement or TIF — needs approval from Walpole Town Meeting in March as well by a state economic council.

The company has said it is considering another site, as well, and has not decided whether to build in Walpole. 

$hades of GE.

The facility has been in Walpole since 1979, and received a $107 million addition in 2006.

Chump change for a billion-dollar conglomerate, right?

Siemens acquired the property about seven years ago from Bayer.

At the time of that expansion, the facility received a 10-year TIF agreement, which as of fiscal 2015 had reduced local property taxes by about $262,000, according to a report filed with the town.

Siemens’ property tax bill in fiscal 2015 was $1.1 million.

The company currently employs about 634 people, according to the town report.

The TIF would apply only to the new construction and would take effect in steps — starting with a 90 percent reduction in property taxes and averaging out to 75 percent over the 20 years, according to documents released by Walpole selectmen.


Did you see who was cutting the ribbon?