QUEENSBURY — Warren County’s low sales tax rate just drew a new business to the industrial park.
Mohawk Werks is relocating from Oneida County because of the rate, said owner Bill Brandt.
His company sells ski trail grooming equipment: big-ticket items that are often picked up at the building. In Oneida County, that means buyers must pay a sales tax rate of 8.75 percent. In Warren County, the rate is 7 percent.
“We’ve actually had customers who’ll have it shipped to their location rather than pick it up because of the sales tax,” Brandt said. “Sales tax is one of the biggest reasons we’re looking at Warren County.”
Customers pay sales tax based on where they take possession of the item. The Oneida County rate is so high that it is cheaper for some buyers to pay shipping, Brandt explained.
To help the company with the move, the Warren-Washington Industrial Development Agency voted Wednesday to offer the standard “inducement” deal. The company will be exempt from property taxes on its new building for five years, and then pay half of the taxes for five years before transitioning to full taxes. The exemption applies only to the building, not the land.
The company will also be exempt from sales tax on all construction costs for the new building and will not have to pay mortgage tax.
Brandt purchased a lot in the airport industrial park, but the purchase was contingent on getting the standard inducement package.
His company has six employees, including himself. He plans to grow to eight employees in the new location. They are paid an average of $62,800, as well as benefits.
Construction will start in the spring. If the new building is done by October, the company will move in immediately. But if construction is delayed, the company won’t move until April 2018. The business is too busy during the ski season to relocate, Brandt said.
“Even if the building is done, we would have to wait until April,” he said.
Even though the business is currently based in Chadwicks, two hours away, local ski slopes are already customers. In the past three years, the company sold $1.3 million in equipment for ski centers in the local area, Brandt said.