More on Wilco Giveaway to Apple

A figure of $16m reported by Austin media (Statesman, Chronicle) as the size of a 15-year tax abatement given to Apple by Williamson Co. is NOT correct. This is assumes a property valuation of only $400m, far less than the $1bn Apple says it will invest in land and improvements.  Austin Bureau

Valuing the property at $1bn (from year 4, when initial construction ends) implies a tax incentive of $33m+. Even a more conservative valuation equivalent to that of Apple's existing (smaller) campus ($535m) yields much more than $16m. Savings to Apple will be $20-40m easily.

These incentives mean that typical homeowners will be paying a higher effective property tax rate than Apple for many years to come. For example, a homeowner in Williamson County whose home is appraised at $200,000, situated in the same tax jurisdictions as Apple, would pay a combined property tax bill of $4,423, equivalent to a tax rate of 2.21%, including homestead exemptions.

Apple, by comparison, would pay an effective rate of only about 1.7% on the property, assuming an appraised value of $400 million, which is the minimum amount the company has committed to invest in the property under an agreement with the county. In other words, the homeowner will pay 1.3 times the rate paid by Apple.

Here is how our elected Commissioners are being dishonest with the citizens of Williamson County.

Williamson County officials used a $1 billion valuation in estimating local tax revenue from the completed campus, but only a $400 million valuation when explaining to journalists the total size of the incentive package.