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ENDLESS POSSIBILITIES
Samsung donations, future tax payments help relieve burden on property owners
TRAVIS E. POLING
A marching-band trailer, educational tools and plum high school internships in the tech sector are just a few of the rewards a partnership with Samsung Austin Semiconductor has yielded for the Taylor Independent School District.
That’s all a boon to the community, but a district official said property owners also could be getting a benefit from that relationship soon in the form of a reduced ad valorem tax rate.
Less than two years into an agreement between Taylor ISD and the Samsung Austin Semiconductor arm of the South Korean tech giant, school officials say the beginnings of the agreed-upon 25-year relationship have been a plus for the district.
Taxes on the increase in property value from Samsung’s $17 billion, 6 million-square-foot semiconductor chip manufacturing plant now under construction are capped as part of an agreement between the school district and the chipmaker.
The tax base, however, still increases substantially with the improvements even after the abatements.
What’s more, companies without tax incentives coming to the area to supply or service Samsung will be paying full freight to the school district on improved land.
“The benefit of Samsung in the community financially is in the development of schools,” said Devin Padavil, superintendent of Taylor ISD since the start of 2021.
He said the agreement under Chapter 313 of the Texas tax code, which is used to incentivize economic development, will lead to a taxable property base large enough that the school board would be able to lower the property tax rate for all home and business property owners in the school district.
“We’re at the beginning of the relationship and I look forward to seeing what the next few years look like,” Padavil said.
While student internships and the creation of a minimum of 25 jobs paying a high average salary are contractual obligations under the deal granting property tax breaks to Samsung over the next quarter of a century, there already have been added benefits, Padavil said.
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In August 2022, Samsung presented grants of $250,000 each to four Taylor organizations including Taylor ISD. That money is being spent on science, technology, engineering and math curriculum resources and a much-needed larger trailer for the Taylor High School Duck’s marching band.
The band previously had something Padavil described as not much bigger than a U-Haul that limited the amount of instruments and equipment that could be transported to away games and competitions.
Padavil said they were asked by Samsung to apply again for this year’s grant cycle; he hopes to hear some news soon if the proposal will be funded.
This year’s request is for money to pay for innovative teacher programs to improve education outcomes for students.
“We want to incentivize teachers to think outside the box,” Padavil said. “Teachers are working hard to accelerate learning” and a formal program would encourage and reward more of that kind of thinking.
Marco Ortiz, Taylor ISD board president and Place 4 representative, said the relationship with Samsung has been a good one in the short term. He added the company has met all of its obligations to date under the Chapter 313 agreement with the school board.
Ortiz and Padavil both said there are no agreements between the district and the tech company dictating donations to the schools. The grant process for donations is open to nonprofits in the area and is determined by the company on a case-bycase basis, Padavil said.
Other school board members contacted by phone did not return calls for comment.
A major donation like last year’s big give from Samsung saves the taxpayers money as the district looks for ways to pay for programs while relying on funding raised from the sale of bonds to improve school safety, build new schools and maintain aging structures.
Nearly two thirds of the 4,000 voters in the $82 million November 2022 bond election voted in favor of Taylor ISD’s proposal. The fundraising effort came without an increase in taxes.
While the housing market has cooled off a little from an overheated scenario just a year ago, higher values and new construction have increased the tax base. The financial adviser to the school district also determined the first phase of the Samsung facility going active in the 20242025 school year would begin generating tax revenue that would offset any economic downturn affecting the housing market.
The current Taylor ISD tax rate per $100 of property valuation is $1.28, the lowest since 2008. The tax rate for 2023 has not been set by the school board for this year.
By comparison, the Hutto Independent School District rate for the 2022 tax year was $1.39. Round Rock Independent School District weighed in at $1.09 per $100 of valuation. Georgetown Independent School District’s property tax rate was $1.21, the lowest in at least 25 years.
As of late April, the House and Senate of the Legislature had dueling property tax-relief bills. Both committed to pushing more than $5 billion from a state revenue surplus to school districts so they could temporarily lower property tax rates. The chambers are at odds still on lasting property tax reform and how big the homestead exemption on school-property taxes should be and what the percentage cap on taxable valuations on properties might look like.
Padavil did not give an indication on how soon a tax rate reduction, unrelated to any legislation, might come.
Meanwhile, Taylor ISD and Samsung have developed a strong partnership, according to a company spokeswoman.
“Samsung Austin Semiconductor is committed to inspiring young students to pursue careers for advanced manufacturing with skills such as problem solving, critical thinking, innovation and collaboration,” said Michele Glaze in a written statement.
Glaze, who serves as director of corporate communications for Samsung Austin Semiconductor, said those skills imparted through working with the students in the schools and paid internships help develop for future careers.
“The possibilities for the students in the Taylor school district will continue to grow as the facility becomes operational and grows,” Glaze said. “Samsung and Taylor ISD have developed a strong partnership ranging from workforce development to internships to supporting teacher innovation. From the superintendent to the faculty and staff to the student scholars, their commitment to excellence in education is admirable.”
She said they are readying themselves for the second set of summer interns.
“It is wonderful to see these students learn more about Samsung and our production and construction process,” Glaze said. “Our employees enjoy working with them and are energized by their enthusiasm. What they learn working here will help them advance in their future aspirations.”
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