When the city of Trenton issues taxable industrial development revenue bonds for the benefit of Nestles USA Incorporated, the agreement also includes abatement of taxes for ten years. But officials say Nestles has agreed to make payments in lieu of taxes for all affected taxing entities.
Phil Tate of Gallatin has been a consultant to the North Central Missouri Development Alliance. While at City Hall, Tate spoke with KTTN following Monday night’s meeting of the Trenton City Council.
For the first five years of personal property and real property tax abatement, Nestles is expected to make a payment in lieu of taxes of $316,000. For the second, five year period of the personal property tax abatement, that payment is reduced to $232,100. The lower amount can be attributed to depreciation.
Nestle’s is expected to initially use approximately one-third of the facility.
By state law, there will be a 20 calendar day period for public comments regarding the issuance of bonds, the tax abatement and payments in lieu of taxes.
Click the link to read more about Chapter 100 Bonds.