West Fraser asks Escambia for tax break as sawmill plans expansion

SEATTLE (Scrap Monster): West Fraser is requesting a tax break from Escambia County as the lumber company prepares for a planned expansion at its McDavid sawmill.

Escambia County staff prepared a draft ordinance proposing the Canadian-based lumber company receive a 70% ad valorem tax exemption for a period of five years. The board can grant all or part of the exemption or deny it.

West Fraser applied for an EDATE for the assessed value of certain improvements to real property and tangible personal property at 401 Champion Drive, the lumber yard’s location in McDavid.

If the exemption is granted the county would lose $590,969 in tax revenue during the current fiscal year, according to the Escambia County Property Appraiser's office, which reviewed the application.

Over the next five years, the estimate of the taxable value lost to the county if the exemption is granted is $70,252,000 improvements to real property, and $3,400,000 to tangible personal property.

In 2023, the board adopted a resolution supporting West Fraser’s expansion and agreed to consider the lumber company’s EDATE application when it was submitted.

At that time, West Fraser officials told the county it had plans to expand its operation in Escambia County and pour about $62 million in construction and new equipment at the sawmill, creating 30 new jobs with an average salary of $49,920.

 Commissioners can establish EDATEs for new and expanding businesses under an existing ordinance. They’re granted on a case-by-case basis and used to incentivize business growth and job creation.

The county is scheduled to vote March 26 at its board meeting on scheduling a public hearing to consider establishing an EDATE for West Fraser. If they vote in favor, the public hearing to consider adopting an ordinance to establish an Economic Development Ad Valorem Tax Exemption (EDATE) for West Fraser would be May 7.

 Courtesy: www.pnj.com