COVINGTON -- The Newton County Board of Education won't collect any tax revenues in the near term from the development of the Baxter International health care corporation in Stanton Springs, but it could collect between $8 million and $12 million over a 10-year period starting as soon as the next five years.
The school board recently passed a tax abatement resolution that consents to the tax agreement between the Joint Development Authority of Jasper, Morgan, Newton and Walton counties and Baxter.
Andrea Gray with the JDA reported to the school board last week that estimates have shown that the board could receive between $8 million and $12.6 million over a 10-year period for its portion of the agreement with Baxter. Without Baxter, the school board would expect to receive $71,352 over the 10-year period.
Gray said that the start date of the revenues would be when the company receives Food and Drug Administration approval of phase one, which could be as early as 2017, or by Jan. 1, 2020.
The school board will earn its share based on the revenue sharing intergovernmental agreement developed in 2004.
Although the property is located partly in Newton and Walton counties, property tax revenues are divided among the counties based on their investment.
Newton and Walton counties each receive 37.5 percent, while Morgan County will receive 15 percent and Jasper County 10 percent.
She reported that total tax dollars collected with Baxter during a 10-year period are estimated to between $31.2 million and $49.6 million, compared to $280,000 without Baxter. The estimates are based on the Walton County millage rate.
Gray noted that counties also will benefit by increased sales tax revenues, new businesses and more jobs being attracted to the area and new employees purchasing new homes in the area.
Baxter is expected to invest more than $1 billion in the facility at Stanton Springs with a one million-square-foot development that is expected to attract nearly 1,500 new jobs, Gray reported.
The global health care company was founded in 1931 in Illinois and employs 48,500 worldwide; 2011 sales totaled $13.9 billion.