Amazon to get state, local tax breaks

Written By Unknown on Kamis, 25 September 2014 | 16.30

Amazon.com will receive nearly $3.5 million in state tax incentives and a tax exemption from the town of Stoughton in exchange for creating 125 jobs at a package-handling facility it's considering opening there — an announcement that drew outrage from one taxpayer advocate.

"Amazon needs a tax credit?" said Barbara Anderson, president of Citizens for Limited Taxation. "Amazon's going to own the world someday. This might finally be the example we need of why the entire economic incentive program is ridiculous."

The online retailer is considering expanding its
network by leasing a 328,000-square-foot facility through which packages from larger distribution centers would get passed onto trucks delivering in New England, according to state officials.

Amazon would invest $20 million to upgrade the facility and fit it with about $17 million in machinery and equipment, officials said, and the project would create 125 full-time jobs in Stoughton.

In exchange, the town would grant the company a 10-year personal property tax exemption worth $2.89 million.

Neither Amazon nor Stoughton Town Manager Michael Hartman returned calls yesterday.

The company also would receive $600,000 in state tax credits, which could be recouped if Amazon fails to make the investment or create jobs, said Matt Sheaff, a spokesman for the Office of Housing and Economic Development.

Still, Anderson wanted to know why taxpayers should help the online retail giant.

"The state and towns shouldn't be picking winners and losers," she said. "Instead, they should create the best economic environment they can for all taxpayers."


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