CHARLESTON COUNTY, SC (WCSC) - A financial incentives ordinance for Boeing passed Charleston County Council with flying colors Tuesday night. The plan will give Boeing a tax break over the next several years while the company invests $1 billion and brings 2,000 jobs to North Charleston.
According to the county's economic development director, the state and county incentives go hand-in-hand. He says a project of this magnitude demands better treatment so we can keep it in South Carolina.
"The state and the county partner on these types of incentive packages so that the company experiences the best of both worlds, both from the state level of taxation and the property taxes, which in the southeast and South Carolina tend to be quite high," explains Steve Dykes, economic development director for Charleston County.
Dykes says State law allows county councils to give any business that spends $500 million a tax rate of 4 percent. County officials say the tax rate in South Carolina is typically between 6 percent and 10.5.
Under the plan passed Tuesday Boeing will pay 2 percent for the next 30 years.
The state is giving Boeing $120 million in incentives to expand. Boeing's expansion is slated to happen over the next seven years.
The council also had its first look at the budget for next year, which calls for a tax decreaseIf the $194 million budget passes, residents will save $4.80 in taxes on a $100,000 owner-occupied home.