Cue all the complainers who will ignore the above facts and complain that Apple gets a tax break. After all, they can afford to pay lots more taxes.... /s

 

Yes. Nevada gets a good deal - vs not working a deal at all and getting no economic benefit. $89 million dollar tax credit given to Apple in exchange for receiving $103 million in economic benefit. 15% return sounds like a win to me!

I live in the area (Tahoe) and fully support Apple coming to Reno.  Reno is in desperate need of major change.  We need new industries here, new businesses, new types of businesses.  If Apple's data center helps to draw more technology companies to Reno, the long-term benefit will be far greater than any calculation can currently measure.  Reno is a short 1 hour flight from the SF bay area and the Reno airport is a dream.  There is also endless outdoor recreation within spitting distance of the city.  There are 12 ski resorts within an hour's drive.  I hope more technology companies look at Reno.  It has a great deal of potential and a company like Apple coming to town will only raise its profile.

If you are not already involved with the Reno City administration, you should be. That's the best and most relevant pitch I've read in a long time!

I don't like it when corporations get tax breaks. They aren't worth more than the citizens who have chosen to live in the same communities. All tax breaks should be given equally to everybody in the area, including existing businesses. It's especially sad when cities do that for sports teams. That is the biggest waste of money that could ever be. Without fail cities lose.
 

Totally agree.

Totally DISagree. They ARE worth more than the citizens there! How can you disregard the obvious economic benefits to the area with the data facility there? Jobs created for some of the local (tax paying) citizens where there would be NONE otherwise, or jobs for new (tax paying) citizens who move there. And what about the business created by and for those Apple-employed citizens and other citizens in the area? How can you ignore the stimulus this would create for other corporations to so locate in the area?

 

All this is worth FAR more that $89M.

 

Aim your "I don't like it" hair trigger at other more deserving targets. Or just put that gun away.

 

So companies are worth more then citizens. Cool. Apple has more than enough money to pay for this but that's not the point. The point is that there is no fairness since only Apple gets the tax break but we haven't heard of other companies getting tax breaks as well.

 

Hadt they not gotten their tax break in Nevada, they would have moved somewhere else and eventually spent the equivalent of $89M if nobody would have allowed them the tax breaks (plus minus whatever other places' taxes are).  Everyone would be happy to get an Apple data center built (econony-wise that is) and I'm happy that it's good for Reno but it would have been good for any other place as well.

 

Tax breaks should be illegal also because they suppress competition. Isn't it that we should be all treated the same? It's just not ethical.

 

Sounds like a race to the bottom to me.

The math is wrong. Apple's tax 'break' doesn't cost the city a penny. It's revenue that they don't have right now. I don't know the area, but the land which will be used undoubtedly has a much lower value today and is not generating a lot of taxes. In fact, if it's anything like the NC or Austin tax 'breaks', the city will be making more after Apple moves in than before, even after Apple's temporary discount on the tax rate. So Apple pays the city more than the previous land owner PLUS the city gets all the other economic benefits.

It's really amazing how people can see this as a negative. I guess it comes from the assumption that everything belongs to the government and companies should be happy with that.

Please explain how the city loses. It appears to be empty land which is generating little tax revenue.

If the city doesn't reach a deal with Apple, they get:
- Continued collection of minimal tax revenues

If they reach a deal, they get from (http://renomemo.rgj.com/apple-looking-to-open-facility-in-reno/):

- $16 M in tax revenue over 10 years - followed by something like $7 M per year after that
- 580 construction jobs for a year and a half
- 200 contract jobs permanently
- 41 full time jobs at the facility (presumably good paying jobs)
- city and state taxes from all of the above jobs
- added business at support facilities (gas stations, groceries, etc) because of the added employees
- a total of $1,000 M investment over the next 10 years (this data center is only part of it)
- greater residential property taxes from new homes and/or increased demand for existing homes due to the new jobs

Now, you may believe that "all your money are belong to us", but that's not the way it works. Apple is free to put their facility anywhere they wish. The city is free to offer whatever tax 'breaks' it wishes to increase its future revenues. Only a fool would insist that "we're entitled to collect all the normal taxes and refuse to give you an incentive to move here". That would be a great way to ensure that your state and city go downhill fast. Your argument that the city loses is absurd. The city comes out way ahead in this deal.