ThyssenKrupp plant's tax impact on Clarke County estimated at $20,000 annually

A second study downplays the impact of the new ThyssenKrupp steel mill on Clarke County and other rural counties in southwest Alabama.

University of South Alabama economics professor Semoon Chang authored a study that estimates that southwest Alabama cities and counties can expect about $3.7 million a year in extra tax revenue from the plant to be built at Calvert.

However, the lion's share of that will go to Mobile and Baldwin counties and cities in those counties.

Clarke County can expect about $20,000 annually in extra tax revenue as a result of the new industry. Escambia County will realize $15,000 and Washington County, right next door to the plant, will see only about $11,000, Chang estimates.

By contrast, Mobile County will earn $1.48 million and the City of Mobile $1.35 million. Baldwin County will gain $247,000 annually.

Because most direct taxes on the new plant were abated for several years, Chang looked at the impact on sales taxes, gasoline taxes, automobile taxes and property taxes to come up with his estimates.

Chang's study was based on population figures, ThyssenKrupp's estimates of its spending, distances to the plant site from other areas and Chang's formula for calculating indirect impacts of new jobs.

He said there are unknown factors in his estimate, such as where new developments will take place and where supplier companies will locate, that could affect his estimates.

Clarke County officials are betting that there will be new developments, supplier plants and new residents as a result of the mill.

Back in the spring, an Auburn University Montgomery professor issued a study suggesting that the impact on rural counties in the area would be less than two percent of the mill's $3.7 billion value. Local officials and Alabama Development Office officials said then they believed that Clarke County would see a greater impact.

Still, two percent of $3.7 billion is $74 million, not a small amount for a rural area like Clarke County.

Reader Comments

No comments have been posted. Be the first!

Other Stories With Comments:
Article	Comments
Alston to celebrate 103rd birthday July 6	1
Godbold-Fleming marry in British Virgin Islands	1
Longtime county lawman retiring	1
CCHS releases honor rolls for third nine weeks	1
Bulldogs christen new field with DH sweep	1
Johnny Estis still going strong at 80, repairing broken TVs, other electronics	1
A Christmas present for CCHS students	1
Clarke County Jail bookings detailed	1
Memoriam	1
Marijuana prevalent in county jail bookings	1