Terex Handlers Receives Tax Abatement to Fund Expansion

October 22, 2007 • Terex Handlers, Baraga, Mich., has been granted an industrial tax exemption by the Baraga village council. The exemption would help fund the company's plant expansion and bring jobs to the community, according to an article in The Daily Mining Gazette. 

The Gazette reports that Terex asked for a 50-percent tax abatement over 12 years on $1.79 million worth of building improvements, machinery and equipment. The council voted 7-1 in favor of a six-year tax exemption, with a six-year extension contingent on Terex's making good on its contractual obligations that are part of the exemption.

The key obligation is job creation, according to the article. In its application for the exemption, Terex stated the expansion would create 75 jobs over two years. If extended for the full 12 years, the tax exemption would save Terex a total of $253,000, the article said.

Terex consolidated its telehandler production in Baraga when it moved production of its Genie 10,000-pound capacity telehandlers there from Redmond, Wash.

Terex's tax exemption, offered through the State of Michigan's Industrial Facility Tax Exemption program, is the first of its kind to be granted by the Baraga Village Council, according to the Gazette. Terex's tax exemption petition will be sent to Lansing for state approval. Terex's application is subject to approval by the village, township, county and state, as well as the local school district, all of which collect taxes from the company.