Farmer Samsung and Rancher Dell

Farmers and ranchers in Texas get an agricultural exemption from most local property taxes.  This weekend's W$J has a piece on who is really benefiting:

According to public records at Travis County Central Appraisal District, in Austin, Korean giant Samsung Electronics cut annual real-estate taxes on 54 acres outside its Austin semiconductor plant to $135.68 from $21,080 last year by implementing a wildlife plan.  Under its 2006 plan, Samsung's activities included hanging 10 birdhouses for wrens, bluebirds, chickadees, and titmice, and spraying for red fire ants.  Samsung also took a census count of the local habitat, recording among other observations that the sky was "mostly cloudy," "seven rock pigeons flew over," and "noise from the plant made surveying more difficult."

Cliff Kessler, who appraises the Samsung property for the county, says he has noticed other wildlife there as well:  "Squirrels, chipmunks, sometimes I see skunks come through."  Mr. Kessler says the corporate tax break "irritates the thunder" out of some Texans.

. . .

Dell Inc., pays $250 a year in property taxes on 65 undeveloped acres of commercial land in Austin on which it grows crops.  The company's founder and chief executive Michael Dell, also receives the tax break on his ranch in the nearby hills, according to Travis County property records.

According to the 2006 wildlife plan filed with the county for the Dell Ranch, Mr. Dell cut property taxes to $1,355 from $580,780 by taking actions such as spraying 185 acres for ants, filling six water stations, stocking 11 turkey feeders, and keeping 100 birdhouses for bluebirds.  He conducts "habitat control," of white-tailed deer through hunting done by "family/guests."  A Dell spokeswoman declined to comment.

Dell's also taking advantage of an exemption for ecolabs.

I wonder what the average homeowner's tax bill would be if there were no agricultural exemption, no ecolab exemption, and no other corporate tax breaks.  You know, if everyone just paid the same rate.

The article insinuates that the agricultural exemption just needs to be tightened up, but why not abolish it?  Farmers get (1) exemptions from local property taxes; (2) direct subsidies; (3) government price supports; and (4) tariffs on foreign food.  What's the real cost of a bushel of corn when you total up all the subsidies and tariffs and add the loopholes exploited by large landowners? 

Comments

[Wishes He Owned A Ranch]

$579,425? The work Dell is doing is worth over a half million dollars?

Obscene.

[DSK]

When I worked at Dell in the late 90s, I remember they planted a field of corn right next to Round Rock 5 (the building at which I worked).

[Sam Chapman]

Do you know anything about the wildlife and ag exemptions being lifted for anyone not owning 20 or more acres?

[AC]

I haven't heard that.