Reynolds-Polymer gets tax incentive from Mesa County
Reynolds Polymer Technology Inc. will be the first Mesa County business to take advantage of an 18-month-old tax incentive for companies that expand locally.
County commissioners introduced the incentive following passage of legislation in 2012 that allowed counties to reimburse a company up to 100 percent of the county’s share of business personal property tax revenue for up to a decade if the business invests at least $1 million into moving into or expanding existing operations in the county. Reynolds Polymer purchased $607,853 worth of equipment last year and plans to spend another $1.149 million on equipment this year for its facility at 607 Hollingsworth Ave.
The company is the first to apply for the incentive in Mesa County and is expected to get $6,249 returned to it in 2016 alone following commissioners’ approval Monday of a full reimbursement of the county’s share of Reynolds Polymer’s business personal property tax payment for tax years 2015 through 2024. Tax and incentive payments are made in the years following each tax year.
Reynolds Polymer Chief Financial Officer Mark Miller told commissioners the company is able to grow at this point despite a slow U.S. economy due to interest from Asian and Eastern European customers. He said the incentive will come in handy when the national economy improves.
“This will help us with our growth plans and visions we have for years to come,” Miller said.
Getting Reynolds Polymer through the application process for the incentive was a “group effort,” according to Grand Junction Area Chamber of Commerce President and Chief Executive Officer Diane Schwenke. Schwenke, who spoke at the meeting alongside Grand Junction Economic Partnership Executive Director Kelly Flenniken, said she hopes to find more businesses to apply for the incentive.
“It doesn’t have a big impact on your budget but it does send a message Mesa County is open for business,” Flenniken said.
The incentive is levied on new investments, so the revenue that gets reimbursed is money the county has not counted on in the past, according to Mesa County Commissioner Steve Acquafresca. He said business personal property tax, which is assessed on equipment and other items used in business, is “counter-intuitive to economic growth” and something he hopes Colorado’s legislature will reconsider having in the future. He added he hopes the state will lower the $1 million investment requirement for businesses to qualify for the incentive.
“This is the first application we’ve had in 18 months and I’m really happy to see something come forward to offer some relief to a business expanding in our community,” he said before the commission unanimously approved the incentive.