(KMOV) – Keeping GM in Wentzville was really a competition with other cities, and in the end, governments had to give in with tax benefits and incentives for the tradeoff of creating jobs.
It all started with the federal bailout two years ago for the automakers. GM got about $50 billion from the federal government – some of which has been paid back, and most of it is in company stock that the government loans.
Now in 2011, Missouri is giving GM a break by allowing the company to keep $36.8 million in employee withholding tax over the next ten years.
Another program could add $5 million more for GM over five to seven years.
Wentzville is giving GM a 75 percent tax break on property taxes for ten years, as well as waiving building permit and inspection fees for the new place. There’s also an exemption for GM from state and local sales tax.
Now GM also has to give back.
They’re investing around $300 million in the new plant, and they have to keep the new jobs to keep the tax breaks.
GM will also be leading new plant and equipment from the city, and it still has to pay property taxes on the old plant and the utility and use taxes.
Wentzville’s mayor says losing GM would be far more devastating than the breaks given to keep GM there.