By Sophie Pappas
Since the Jan. 10 announcement that Hat World, Inc. will be moving to a site at Creekside Corporate Park, talks of tax abatements and incentives have been looming.
Hat World is planning for a 150,000-square-foot corporate office, which will create approximately 450 jobs. Annuals salaries for these jobs will average $52,000.
The town’s communications consultant, Kate Snedeker, stated that the project will have a “tremendous local economic impact.”
The Zionsville Town Council approved fee waivers for road impact fees, sewer connection fees, building ILP fee and sign permit fee at its Feb. 3 meeting. These waivers come to an approximate value of $264,000.
Last week, the town officially released the estimated figures for just how much money Hat World will save with the assistance of tax abatements.
Two forms of tax abatements are being proposed: a real estate abatement and a personal property abatement. Both of these are good for 10 years.
The real estate abatement is estimated to be $194,438 per year. The personal property abatement is estimated to be $15,350 per year.
A public hearing to discuss the tax abatements is scheduled for 6 p.m. March 3 at town hall during the town council’s meeting.
These are the proposed tax abatements for Hat World, Inc.
Real Estate:
Annual Tax = $418,810 per year
Abatement = $194,438 per year (note: land value is not eligible for 50% abatement)
Personal Property:
Annual Tax = $78,031
Abatement = $15,350 (note: only new personal property is eligible for 50% abatement)
Total Tax Paid = $287,052
Abatement = $209,789
What is a tax abatement?
A tax holiday is a temporary reduction or elimination of a tax. Governments usually create tax holidays as incentives for business investment.
