MySanANtonio.com
A sweetheart of a tax break is about to come to an end for SpaceX just as the company’s Starbase launch facility in South Texas has begun to hit its stride.
That’s because a tax abatement agreement the company reached with Cameron County officials in 2014 is set to expire this year.
“The original contract was approved in August 2014,” Ramiro Aleman, the county’s economic development director, told county leaders during a March 25 meeting of the Cameron County Commissioners Court.
As part of the deal — known as a Chapter 381 agreement due to the statute that allows county governments to offer economic incentives to corporations — the county agreed to abate, or not charge, SpaceX any property taxes for a period of 10 years.
In exchange, SpaceX was required to invest at least $85 million in the site and create at least 300 jobs.
“Based on their most recent local impact information, they’ve invested over $3 billion out there,” Aleman said.
“Their minimum jobs, per contract, is 300. They have 3,400 direct (employees) and contractors out there,” he added.
The company itself reports that its business is booming.
“Our Boca Chica Beach site population is about 3,011 personnel, plus local contractors with over $271 million in salaries in 2024,” Jane Hasselberg, a senior manager for SpaceX, wrote in a Feb. 28 letter addressed to Cameron County Judge Eddie Treviño Jr.
That personnel number is much larger than the nearly 500 residents whom SpaceX officials say live near the launch facility as part of a petition to incorporate the city of Starbase.
Aleman went on to explain that though the agreement was inked in 2014, at the request of SpaceX, the county later agreed to delay the start of the tax abatement term until 2015, which pushed the end of the contract until 2025.
Now, with the end of the term looming, officials took a moment to discuss what that will mean for the county moving forward.
As SpaceX has developed the once vacant land — turning rare coastal prairie into something straight out of science fiction — the value of the properties has skyrocketed.
Now, the portions of Starbase that are subject to the tax abatement agreement are worth nearly $266 million in taxable value, Aleman said.
Much of those higher valuations have come within the last few years — since the company first began launching test vehicles in 2019.
One parcel of land that the Cameron County Appraisal District valued at almost $82 million in 2021 is now worth more than $160 million.
Still another parcel jumped from around $1.2 million to more than $68 million between 2018 and its projected valuation for 2025, county records show.
Cameron County’s ad valorem tax rate is currently $0.426893 per $100 valuation.
Had the tax abatement agreement not been in place, SpaceX would have owed the county more than $1.13 million in property taxes.
the tax abatement agreement only applies to the ad valorem taxes due to the county. The company must still pay property taxes to other taxing entities, such as local school districts and the Brownsville Navigation District.
SpaceX will begin owing the Cameron County portion of its tax bill in 2026, Aleman said.
20 comments:
Just another example of Elon Musk fucking you. FACT
China responde a Trump y elevará al 125% desde mañana los aranceles (tariffs) a productos de EU
"Si Estados Unidos continúa jugando con las cifras de los aranceles, China lo ignorará", señaló el Ministerio de Finanzas de China.
That's a lot of tax revenue Cameron County gave up - too much.
Trump has blinked so much during his hilarious tariffs that he might as well have his eyes completely shut. What a pathetic liar and coward.
The Brownsville City Commission, Edelmiro Garcia or whomever is in charge of this needs to take a lesson frome Trump and DOGE. They can start with a 124% tax and stick to their huevos.
I know it will never happen but even keying it in felt good.
Cameron County cannot beat Elon Musk. He'll have his way with pliant the judge and county commissioners. FACT.
They invest “billions” and are valued at couple hundred million? The math doesn’t add up
and this is the reason, Space X will create Starbase, Texas to avoid paying taxes to Cameron County Musk knows how to do business and he was dealing with the smart people of Brownsville, not the regular dudes
Nobody cares about a couple of loud environmentalists. They only get 15 or so supporters at their protests. 95 percent of people in brownsville support SpaceX and assistant president musk.
Little King eddie will give them more time and they will incorporate and then not pay their fair share of taxes
they'll get an extension some of the local elected officials need la feria so an extension is in order ops in their pockets...
puro tax break... and under the table deals with the cc judge Trevino.. two for me one for cameron county..
Your Democratic side is showing. Do you remember the Russian Collusion? How about Biden being in the greatest mental health. Democrats have been liking to the people for decades. But you all kept silent afraid of losing you handouts.
Get over Musk. He was offered a deal and took it. Go look for the city officials who sold out. So typical of Democrats.
Brownsville has smart people? Brownsville only has crooks. All democrats!
came to the perfect place, RATAVILLE IN RATAS GRANDE del VALLE (rgv)
Why did a gringo come up with a daily report of the rocket place at boca chica??? why??? pinches mojados, DON'T YOU PEOPLE GO TO SCHOOL??? PINCHES BURROSSSS....
THERE ARE ONLY 15 GRINGOS IN THIS HERE VILLAGE AND THEY RUN EVERYTHING. THEY NAME EVERYTHING IN SPANISH JUST TO KEEP YOUR BROWN ASSES CALLADOS.... STUPID IDIOTAS...
Las Ratas anthem, Mamar y mamar y mamar...yo sigo siendo RATA.... AY AY aaaaaayy"...
y puros racist republicans don't know who or why so they just join any protest groups. IDIOTAS!!!
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