ANNOUNCEMENT 11 Aug 2014
The value of the 30-year deal may be as high as $2 billion.
NUMBER OF INTERVENTIONS
Two units of local government in the state of Oregon, namely Washington County and the city of Hillsboro, announced on August 11, 2014 a deal with Intel that provided for three decades of property-tax breaks. County officials did not provide an estimate of how much money Intel will save in the deal, but press accounts suggested that the total could be in the neighborhood of $2 billion (i.e., about $67 million per year). The terms of the agreement were modeled on a deal that Intel negotiated in 2005 that requires the company to pay "full freight" property tax on its land and buildings, plus about $5 million a year in other payments. The new, 30-year agreement exempts up to $100 billion in Intel tools and equipment from property taxes that other businesses pay. Intel will pay regular property taxes on its land and buildings and the first $100 million of equipment. It will also pay $2.9 million annually for 20 years, plus a $2 million “community service fee,” and make a $100,000 charitable contribution in each of the next six years.
Washington County commissioners and the Hillsboro City Council approved the deal at a joint meeting on August 26, 2014.