By HEATHER BONHAM
Correspondent

In a move to foster economic growth, the Williamson County Commissioners Court approved eliminating the Freeport property tax on manufacturing companies Jan. 19.
With the 5-0 vote, the Commissioners completed the process begun six months ago “which will lower taxes and help economic growth,” County Judge Dan Gattis said.
The commissioners had discussed eliminating “the unfair business tax” since 2008, Commissioner Cynthia Long said. She led the effort to assess the financial impact on the county and work with local companies and economic development directors on the plan.
The final agreement, signed by 19 companies with one agreement pending, was “an unprecedented display of cooperation among the private sector, the county and the cities,” she said.
The plan reduces the amount owed by individual manufacturing companies by 20 percent in Freeport taxes each year, effective Jan. 1 until the tax is completely phased out by 2014.
Each agreement assigns a specified amount owed by the company to the county based on goods in transit or held in Texas 175 days or less before being shipped out of state or country.
The fixed amount is owed within the next four years; if the business expands during that time the percentage of expansion by the company would help counter the amount owed.
The county’s baseline of taxable value is $88 million, Long said.
New companies moving into the county will not be taxed, however the revenue they bring in for the county can offset the total amount owed during the next four years, she said.
Change benefits local companies
Acoustical Resources, a Leander manufacturing company is one of the 20 companies affected. Owner Burt Cullum said, “This initiative will help to put my company on a more competitive playing field with our competitors.
“Let us all cheer for LISD to join the partnership as soon as possible,” he said.
Discussion within the Leander Independent School District administration is underway. Letters have been sent to local companies to formulate the agreement to eliminate the school’s Freeport tax, district spokesman Dick Ellis said.
“Leander Independent School District is hopefully weeks away from doing that as well,” Long said. “Once that happens, much of southwestern Williamson county will be in a triple Freeport sweet spot and make that area that much more attractive to our businesses,” she said.
Cedar Park Economic Director Phil Brewer has worked with the county and school district to eliminate the tax because he sees the benefits of the elimination.
The tax has been an impediment for some companies looking at relocating to the area.
Cedar Park, Leander and other cities within the county have the Freeport elimination.
“This opens us up to a whole new areas; we will get on the radar screen once we get the triple Freeport exemption,” he said.