According to The Mississippi Press, there are several state and local tax incentives that Gulf LNG could
seek as it proceeds with plan to construct a $600 million liquid natural gas terminal
off Industrial Road.
Gulf LNG, Jackson County Board of Supervisors
and the Port of Pascagoula entered
a sublease agreement Monday that enables the company to use 106 acres of land south of Chevron (CVX)
Refinery on the east side of the Bayou Casotte channel that
the state leases to the Port of Pascagoula.
On the state level, two tax incentives are exemptions for state corporate income tax liability and access to tax exempt bond financing.
Locally, ad valorem exemptions are available.
However, under fee in lieu exemptions, governing entities (Jackson County Board of Supervisors and Pascagoula City Council
) would have the legal latitude to negotiate taxes down to one-third of what the school taxes would have been under a standard exemption.
Nic Elmore, assistance director for the tax assessor's office, said on a $600 million project, about $5.1 million will be generated in new ad valorem tax dollars for the county, Pascagoula School District
and Mississippi Gulf Coast Community College.
A property tax exemption is a tool used to help communities compete for projects. It also helps a project get up on its feet during the formative years of development so it could be productive and competitive long-term.
Source: The Mississippi Press