Xerox Corporation (NYSE:XRX) caught in Webster tax web
Xerox Corporation (NYSE:XRX) and the town of Webster seem to be at loggerheads over the expansion that has been proposed by the company as well as its current assessment. Any expansion also means that the company will have to apply for various incentives and tax breaks. Ronald Nesbitt, the Town Supervisor said that he backs the all the tax breaks for 190-200 jobs.
Business against emotion
What he is objecting to is the fact that a company like XRX which boasts of $22M in sales, is asking residents of the town to shell-out more towards its tax breaks. John Farnan, the Property Manager for Xerox said that the company understands the concerns and emotions of the local populace. However, for the corporation, it’s less about the emotion quotient and more to do with hard business facts.
The tax estimate
The expansion that has been proposed by the company is estimated to cost $5M. This expansion involves adding 50,000 sq ft to the existing toner building. XRX also plans on investing $30M in the manufacturing equipment. The application that the company has made to the County of Monroe Industrial Development Agency (COMIDA) states that it employs around 5,987 full-time employees in that county. The Agency estimates that the company will be paying around $776,000 in taxes over ten years. Effectively this works out to a $76,000 yearly payment. This payment would be divided between the Town, the County and the School district.
Some time ago, the town and the company did try to sit and sort this issue but that did not progress too well for either of the parties. Farnan said that Xerox Corporation (NYSE:XRX) pays the most taxes in Webster and uses the least services. The COMIDA board will conduct the final vote on the company’s application today.