Hattiesburg City Council members have given the green light to approximately $824,612 in new tax exemptions to 10 industries in the city, most of which are located in the Hattiesburg-Forrest County Industrial Park off of U.S. 49.
A presentation was given at the September 19 council meeting by Alex Pickle, co-founder of Local Impact Analytics, before the measure was approved the next day. Each of the companies was granted its exemption for 10 years, with the exception of Excel Injection Molding, which was given a five-year exemption.
“These exemptions are something we look at periodically as requested by the companies that have received them, and we try to evaluate the economic impact that those companies are having here in Hattiesburg,” council president Jeffrey George said. “If, in looking at that, we feel like they are continuing to grow and invest in our community, then typically what we will do is grant those property tax exemptions for them.
“As people will see, they’re still contributing to our tax base through school taxes and some county and city taxes as well. But we do recognize that these major employers in our community, help create jobs and keep the economy moving. That’s something that is a big priority for us, is to continue creating jobs here in Hattiesburg and keep our economy moving forward in a positive direction.”
The exemptions are as follows (employment, earnings and output numbers are for Tax Year 2022):
- Excel Injection Molding: A new exemption of $2,133 over the next five years. Adding that to the existing exemption of $8,467, the current amount is $10,601. The company features 50 direct jobs, $.2.43 million in direct earnings and $17.55 in direct output. Existing city taxes are $14,584 and existing school taxes are $28,670.
- Georgia-Pacific Consumer Holdings: A new exemption of $69,347 over the next 10 years. Adding that to the existing exemption of $216,364, the current amount is $285,712. The company features 122 direct jobs, $6.59 million in direct earnings and $46.27 million in direct output. Existing city taxes are $99,554 and existing school taxes are $392,695.
- Green Bay Converting: A new exemption of $5,134 over the next 10 years. Adding that to the existing exemption of $25,049, the current amount is $30,183. The company features 71 direct jobs, $3.83 million in direct earnings and $26.92 million in direct output. Existing city taxes are $18,242 and existing school taxes are $44,229.
- Kohler Company: A new exemption of $641,786 over the next 10 years. Adding that to the existing exemption of $850,100, the current amount is $1.49 million. The company features 1,145 direct jobs, $68.03 million in direct earnings and $505.37 million in direct output. Existing city taxes are $192,527 and existing school taxes are $1.29 million.
- Mississippi Tank: A new abatement of $7,428 over the next 10 years. Adding that to the existing exemption of $54,002, the current amount is $61,430. The company features 185 direct jobs, $10.55 million in direct earnings and $54.12 million in direct output. Existing city taxes are $103,814 and existing school taxes are $196,283.
- Resinall Mississippi: A new exemption of $69,347 over the next 10 years. Adding that to the existing exemption of $131,337, the current amount is $200,685. The company features 111 direct jobs, $11.31 million in direct earnings and $85.70 million in direct output. Existing city taxes are $64,603 and existing school taxes are $200,393.
- Western Container: A new exemption of $15,934 over the next 10 years. Adding that to the existing exemption of $218,966, the current amount is $234,900. The company features 81 direct jobs, $5.44 million in direct earnings and $48.08 million in direct output. Existing city taxes are $273,643 and existing school taxes are $612,678.
- Wis-Pak of Hattiesburg: A new exemption of $6,613 over the next 10 years. Adding that to the existing exemption of $177,987, the current amount is $184,601. The company features 143 direct jobs, $802 million in direct earnings and $60.77 million in direct output. Existing city taxes are $111,139 and existing school taxes are $359,599.
- York International: A new exemption of $1,972 over the next 10 years. Adding that to the existing exemption of $48,962, the current amount is $50,935. The company features 240 direct jobs, $12.41 million in direct earnings and $91.36 in direct output. Existing city taxes are $49,553 and existing school taxes are $122,527.
- Zeon Chemicals: A new exemption of $6,918 over the next 10 years. Adding that to the existing exemption of $31,516, the current amount is $38, 435. The company features 43 direct jobs, $4.38 million in direct earnings and $33.2 million in direct output. Existing city taxes are $88,158 and existing school taxes are $148,884.
This year marks the first time that council members have given the exemptions since the outbreak of the COVID-19 pandemic in the area in March 2020.
“With the pandemic and the uncertainty of where our budget was going to be and what was happening in the economy, it’s something we kind of held off on,” George said. “But we decided we’d pick it back up this year and look at it.
“As we saw on the presentation that was given to us on each one of these employers, in some way, shape or form, every single one of them has increased their investment.”
There have been some exceptions to that over the years, however. In late 2017, officials from Stion, a solar panel manufacturer in the industrial park, laid off 137 employees after announcing the closure of the plant.
That came after Stion borrowed $74.8 million from the state and promised to bring 1,000 jobs to Hattiesburg.
“I think the Stion situation was much different, because they money they received was state money,” George said. “They did receive some property tax exemptions, but that building that they built is still being utilized, just by a different employer now.
“But every company that we considered and approved (this year) for a property tax exemption has a long-standing record here in the community, and has been an employer here in Hattiesburg for over 10 years. So I think we’re confident in these companies remaining here and hopefully continuing to grow and invest, and increase the number of jobs they have here in Hattiesburg.”
