Idaho Trades Sales Tax Exemption For Jobs – Sound Familiar?
- Sales Tax News
- Apr 12, 2012 | Susan McLain
In recent months (and years) we’ve heard all about Amazon making every effort to garner deals with states where they are considering putting a warehouse or distribution center. They bargain for sales tax exemption in exchange for bringing jobs. But Amazon isn’t the only company trying to trade sales tax collection duties for jobs.
Western Aircraft in Boise, Idaho finally got the break they are looking for and are honoring the “deal.” “Less than a month after Idaho lawmakers gave the company a sales-tax break on parts used in out-of-state private aircraft, Western is making good on its promise to expand hiring,” according to the Idaho Statesman.
Western was struggling to compete “…with businesses in 26 other states where the tax is waived.” So Western estimated they could add 12 new jobs with an estimated $56,000 per year pay (base pay and overtime combined) in the first year. Within the next five years, they expect to add 100 new jobs. The company currently has 165 employees.
“Removing the sales tax was part of the company’s strategy to double its size in the next five years,” says Jeff Mihalic, Western’s president. They have mainly done business in the western United States, but have recently begun expanding in Ohio and Texas. “We’ve got a couple of new customers in Ohio. We are gaining momentum.” But that momentum was dependent on Western receiving the sales tax exemption from Idaho State.