Cabela's will have to pay back $173,000 in local tax incentives after it missed job targets in its Buda, Texas, store for the third consecutive year, according to an April 22 report in the Austin American-Statesman. According to the news report, Cabela's incentive contract required the company to maintain the "equivalent of 225 full-time employees." It reported only 190.4 full-time positions at the end of 2007, according to the story. Cabela's has already returned $260,500 to Buda and Hays County governments, the report stated. In addition, it is possible Cabela's may be required to repay some of the $400,000 the retailing giant received from the Texas Enterprise Fund. To read the complete story, click here.
SNEWS® View: We certainly understand city, county and state governments desire to provide attractive financial packages in terms of grants and tax incentives to large retail entities. After all, attract an REI, Cabela's or Bass Pro Shops into town and your job market should look better, your tax revenues will certainly be higher, and when one large company enters the market, logic holds it becomes more attractive for others to follow. It's all about good business and responsible government helping a community to grow and prosper…right? Well, we at SNEWS® don't necessarily agree with all that. After all, what about retailers and other businesses, albeit smaller ones, already in town or in the county, that have been paying taxes, hiring staff and supporting the local economy for decades? It is no secret that large retailers often rely heavily on tax incentives and other perks to enable them to expand into new markets and grow. We're interested in what you think, pro or con or somewhere in between, regarding tax incentives offered to attract companies to locate in a particular municipality or county. Use the SNEWS® Chat at the end of this story to chime in.