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HomeMy WebLinkAboutTax Relief (6) , \ ~ i " j- . APPLICATION New or Expanding ManufacturinR Industry Propert.y Improvements or Mod...rnlzed Processes (TJ tie I5 - Chapter '14 - Part 14 MCA) TO: Assessor, County NAME OF APPLICANT; Mailing Address: LEGAL DESCRIPTION OF AFFECTED PROPERTY: DATE CONSTRUC'I'lON PERMIT ISSUED: (If no permit Is required, specify the date when construction began.) THIS APPLICATION COVERS THE (EXPANSION/NEW) CONSTRUCTION OF TIlE . PLANT. NUMBER OF ANTlC1 PATED NEW JOBS WHICH WI LL BE CREATED? NUMBER OF EXISTINC JOBS WHICH WILL BE ELIMINATED? WHAT AFFECT WILL THE NEW, EXPANDING, OR MODERNIZED INDUSTRY HAVE ON OTHER BUSINESSES IN THE TAXING JURISDICTION? . ....., '\; " WHAT ECONOMIC BENEFIT CAN BE EXPECTED WITHIN THE TAXING JURISDICTION FROM THE CREATION OF TIlE NEW OR EXPANDINC INDUSTRY? :;"':"1'"' " '- , , , , AN APPLICATION FOR "NEW INDUSTRY" CLASSIFICATION (WItt/WILL NOT) BE MADE TO THE DEPARTMENT OF REVENUE FOR THESE FACILITIES. (15-6-135(3), MCA) ....._~-_..~~" ... THE QUALIFYING PROPERTY CONSISTS OF THE FOLLOWING: " . ( : TilE MODERNIZED PROCESSES CONSIST OF THE FOLLOWING: THIS APPLICATION IS MADE UNDER TilE PROVISIONS OF 15-24-1402, MCA, AND BY RESOLUTION ADOPTED BY THE ',): Taxi.ng of ~. t .i.. i COUNTY, ON THE "{ , 19~ I . DAY OF A COpy OF JurisdIction SAME IS ATTACHED. ...',. ,...(i ..-. Owner:lAg~nt 'jf -" ,- Subscribed and sworn to before me this day of 11-; ,19_ .._". , . (NOTARY SEAL) , t I "',..~t-( , '.,-..".- L ',~ . ------ "' -'Notary Public for the .-- State of ) residing at .'. My Commission Expi.res: (: -/ . ---------------~irc~----------------------------------------- WE, THE UNDERSIGNED, e*l!l.k",', - Commissioa.f Ci1/:y of Bozeman (APPROVE"'h"Hrr~) TlIIS APPUCATION Ii t Ie Taxing Jurisdiction BY 'rattice I"'aterials Corp. . WE FIND TllAT IT (DOES~8>:,"",) CONFORM TO THE CRITERIA AS SET FOR111 IN THE RESOLUTION ADOPTED BY THIS City Commission ON THE ~DAY OF July , 19.9.5... Robin L. Sullivan Clerk of Commission Name Title ') 1 'I (') '~1'..'/ I '", I ,f' i , /A " \.'-~;-[ ;r"'.l~'\J'~-:'--......... '/ I 1-, _ Name Title Name Title Subscribed and sworn to before me this , day of ,19_ , t-"~ (NOTARY SEAL) Notkry Public for th~ State of residing at My Commission Expires: NOTE: MAKE APPLICATION FOR EACH AFFECTED TAXING JURISDICTION AND ATTACH THEIR RESOLUTION. Assessor (Original); Clerk & Recorder (Pink); Tax Jurisdiction (Canary); Applicant (Gold) " , :j; THE CITY OF BOZEMAN 411 E. MAIN ST. P.O. BOX 640 PHONE (406) 586-3321 BOZEMAN, MONTANA 59771-0640 To: City Commission From: Miral D. Gamradt, Administrative Services Director 1'~ ~1> Subject: Tax Abatement Application Date: June 6, 1995 Attached is an application for a tax abatement from Lattice Materials Corporation. The application is being made pursuant to Section 15-24-1401 & 1402 MCA which provides for a reduction in property taxes for qualifying improvements or modernized processes that represent new industry or expansion of an existing industry. I have attached a copy of the state law for your information. In order to be eligible for a tax abatement, a business must add at least $50,000 worth of improvements in the current calendar year or the preceding calendar year. If the tax abatement is approved, the qualifying improvements will be taxed at 50% of their value for the first 5 years. Each year thereafter, the percentage will be increased by equal percentages until the full taxable value is attained in the 10th year. In subsequent years, the property must be taxed at 100% of its taxable value. Lattice Materials has attached a list of equipment items purchased in 1994 and 1995. The total of these purchases amount to $484,481. Included in this amount are items such as office equipment. The Commission may choose to approve all of these items for a tax abatement. Or, the Commission may choose to make a distinction between items that it considers relate to the modernized processes and those relate to normal office operations and then only approve for tax abatement the items that relate to the modernized processes. This distinction would be at the discretion of the City Commission. Following the public hearing, if the Commission approves the tax abatement application, a resolution will be prepared reflecting the Commission I s action and specifying the improvements which will qualify for the abatement. M95-78 HOME OF MONTANA STATE UNIVERSITY GATEWAY TO YELLOWSTONE PARK " " , X,. r 4$5 SPECIAL PROPERTY TAX APPLICATIONS 15-24.1401 15-24-1304. En. 84.7504.1 by Sec. 3, 15-24-1311. En. 84-7513.1 by Sec. 10, Ch.582. L. 1977; RC.M.1947, 84-7504.1; amd. Ch. 582, L.1977; RC.M.1947, 84.7513.1; amd. Sec. 6. Ch. 274, L. 1981. Sec. 25, Ch. 693, L. 1979. 15-24-1305. En. 84-7505.1 by Sec. 4, 15-24-1312. En. 84.7514.1 by Sec. 11, Cb. 582, L. 1977; R.C.M. 1947,84-7505.1. Ch. 582, L. 1977; RC.M. 1947,84.7514.1. 15-24-1306, En. 84.7508.1 by Sec. 5, 15-24-1313. En. 84-7516.1 by Sec. 13, ~ Ch. 582, L. 1977; RC.M. 1947,84-7508.1. Ch. 582, L. 1977; R.C.M. 1947,84-7516.1. 15-24-1307. En. 84-7509.1 by Sec. 6, 15-24-1314. En. 84-7517.1 by Sec. 14, Ch. 582, L. 1977; RC.M. 1947,84.7509.1. Ch. 582, L. 1977; RC.M. 1947,84.7517.1. 15-24-1308. En. 84.7510.1 by Sec. 7, 15-24-1315. En. 84-7518.1 by Sec. 15, Ch. 582, L. 1977; RC.M.1947, 34-7510.1; amd. Ch. 582, L. 1977; RC.M. 1947,34-7518.1. Sec. 24, Ch. 693, L. 1979. 15-24-1316. En. 34-7519.1 by Sec. 16, 15-24-1309. En. 84.7511.1 by Sec. 8, Ch. 582, L. 1977; RC.M. 1947,84-7519.1. Ch. 582. L. 1977; RC.M. 1947,34-7511.1. 15-24-1317. En. 84-7515.1 by Sec. 12, - - - ~ ~ ,. : . 15-24-1310. En. 84-7512.1 by Sec. 9, Ch. 582, L. 1977; R.C.M. 1947,34-7515.1. Ch. 582, L. 1977; RC.M. 1947,84-7512.1. 15-24-1318. En. 34.7520.1 by Sec. 17, Ch. 582, L. 1977; R.C.M. 1947,34.7520.1. Part 14 New Industry - Real Property Improvements 15-24-1401. Definitions. The following definitions apply to 15-24-1402 unless the context requires otherwise: (1) "Expansion" means that the industry has added after July 1, 1987, at least 850,000 worth of qualifying improvements or modernized processes to its property within the same jurisdiction either in the first tax year in which the benefits provided for in 15-24-1402 are to be received or in the preceding tax year. (2) "Industry" includes but is not limited to a firm that: (a) engages in the mechanical or chemical transformation of materials or substances into products in the manner defined as manufacturing in the 1972 Standard Industrial Classification Manual prepared by the United States office of management and budget; (b) engages in the extraction or harvesting of minerals, ore, or forestry : , . products; " (c) engages in the processing of Montana raw materials such as minerals, 0"." ...--.' ore, agricultural products, and forestry products; ..-- Cd) engages in the transportation, warehousing, or distribution of com- .. " mercial products or materials if 50% or more of the industry's grosS sales or receipts are earned from outside the state; or . --.-- (e) earns 50% or more of its annual gross income from out-of-state sales. 0" ,..".. "." ..... --.. (3) "New" means that the firm is new to the jurisdiction approving the resolution provided for in 15-24-1402(2) and has invested after July 1, 1987, at least $125,000 worth of qualifying improvements or modernized processes in the jurisdiction either in the first tax year in which the benefits provided for in 15-24-1402 are to be received or in the preceding tax year. New industry does not include property treated as new industrial property under 15-6-135. (4) "Qualifying" means meeting all the terms, conditions, and require- ments for a reduction in taxable value under 15-24-1401 and 15-24-1402. History: En, Sec. 2, Ch. 564, L.1981; amd. Sec. 1, Ch. 574, L.1987; amd. Sec. 2, Ch. 694, L. 1991. , ., " . ,.. '. .'. ,':'. ., , ..... . .".<," . ,. , . 15.24,1402 TAXATION 486 15~24-1402. New or expanding industry - assessment - notifica- tion. (1) In the first 5 years after a construction permit is issued, qualifying improvements or modernized processes that represent new industry or'ex:" pansion of an existing industry; ,as designated in the approving resolution, must be taxed at 50% of their taxable value. Each year thereafter, the ~ percentage must be increased by equal percentages until the full taxable value is attained in the 10th year. In subsequent years, the property must be taxed at 100% of its taxable value. (2) (a) In order for a taxpayer to receive the tax benefits described in subsection (1), the governing body of the affected county or the incorporated "."".' city or town must have approved by separate resolution for each project, .. .. -, following due notice as defined in 76-15-103 and a public hearing, the use of -, ,. 0"_-- . -:-" ..... . ~:.:~ ---:.... the schedule provided for in subsection (1) for its respective jurisdiction. The governing body may not grant approval for the project until all of the " applicant's taxes have been paid in full. Taxes paid under protest do not preclude approval. (b) The governing body may end the tax benefits by majority vote at any time, but the tax benefits may not be denied an industrial facility that previously qualified for the benefits. (c) The resolution provided for in subsection (2)(a) must include a defini-- tion of the improvements' or modeI-nized processes 'that qualify for the - taX treatmentthat is'to be allowed in the taxing jurisdiction. The resolution may provide that real property other than land, personal property, improvements, or any combination thereof is eligible for the tax benefits described in subsec- tion (1). (3) The taxpayer shall apply to the county assessor on a form provided by the department of revenue for the tax treatment allowed under subsection (1). The application by the taxpayer must first be approved by the governing body of the appropriate local taxing jurisdiction, and the governing body shall indicate in its approval that the property of the applicant qualifies for the tax treatment provided for in this section. Upon receipt of the form with the approval of the governing body of the affected taxing jurisdiction, the assessor , , shall make the assessment change pursuant to this section. c ..- '. -~~' - (4) The tax benefit described in subsection (1) applies only to the number of mills levied and assessed for local high school district and elementary school . .-- district purposes and to the number of mills levied and assessed by the governing body approving the benefit over which the governing body has sole discretion. In no case may the benefit described in subsection (1) apply to levies or assessments required under Title 15, chapter 10, 20-9-331, 20-9-333, 20-9-360, or otherwise required under state law. (5) Prior to approving the resolution under this section, the governing I body shall notify by certified mail all taxing jurisdictions affected by the tax benefit. History: En. Sec. 3, Ch. 564, L.1981; amd. Sec. 2, Ch. 574, L. 1987; amd. Sec. 3, Ch. 694, L. 1991; I1md. Sec. 48, Ch. 767, L. 1991. ...../.. . ~~LAII ICE = From crystal growth to finished blanks June 6, 1995 City Commissioners City of Bozeman 34 North Rouse Ave Bozeman, MT 59715 Dear Commissioners: On behalf of Lattice Materials Corporation, I respectfully request the reduction in property assessment as provided for under 15-24-1402. I have enclosed copies of asset listings and description that were included in previous correspondence. The 94 asset listing has been reformatted for comparability to the 95 asset listing. In 1994 Lattice Materials grew by 12 employees, this 1S a 46% growth over 1993 levels. In 1995 we have added 4 employees to date with plans to add 4 to 6 by year end. The addition of the equipment and processes in the attached schedules have provided not only an increase in number of full time positions, but has strengthened the company, preserving it as a long term sustainable employer for the community. If you have any question prior to the June 19th City Commiss'ion meeting, please call me. Thank you for your time in consideration of this matter. Sincerely; ~-.:- ------=-?--~ ~~-, Carol Engen Accountant enc(4) Lattice Materials Corporation 516 E. Tamarack Bozeman, MT 59715 Phone: 406 586-2122 FAX: 406 587-9055 ~ -~ , LATTICE MATERIALS CORPORATION ATTACHMENT TO EXPANDING BUSINESS APPLICATION ASSETS PLACED IN SERVICE IN 1994 DATE OF DATE IN AMOUNT DESCRIPTION PURCHASE SERVICE -------.----------------------------------------------------------------.-----------. PRODUCTION GROWTH DEPARTMENT PULLER #3/SHUMACHER 1993 JAN 94 $1,962.75 SLICE DEPARTMENT SINKS FOR SAW ROOM 1993 JAN 94 $13,791.63 SHAPING DEPARTMENT CENTERLESS WHEEL BALANCER 1993 JAN 94 $1,594.39 EDGE GRINDER 1993 JAN 94 $8,515.33 VS-4 ANTON 4" BLOCK SET 1993 JAN 94 $515.00 BRIDGPORT CNC MILL 1993 JAN 94 $28,144.98 EDGE BEVELER 1993 JAN 94 $3,552.85 CURVE GENERATOR #1 1993 JU L 94 $18,325.79 GRINDING WHEEL SET 1993 JUL 94 $2,994.87 R & C CURVE GENERATOR #G150(SBAO) 1993 JUL 94 $2,385.89 POLISH DEPARTMENT LAPPER #1 (SPITFIRE) 1994 JAN 94 $25,526.87 LAP PER #2(SPITFIRE) 1994 SEP 94 $4,850.00 QUAUTY CLEAN/DRY AIR SYSTEM 1993 JAN 94 $7,943.75 SCRATCH DIG STANDARDS 1993 JAN 94 $1,000.00 COMPARATOR 1994 JUL 94 $4,723.00 ETV TOOL 1994 JAN 94 $514.00 CLEANROOM CABINETS[TABLES 1993 JAN 94 $520.00 -----------. TOTAL PRODUCTION $126,861.10 -----------. E-MAIL 1994 JUL 94 $1,379.00 VCR 1994 JUL 94 $507.76 PHONE SYSTEM 1994 JUL 94 $10,407.80 -----------. TOTAL OTHER $12,294.56 . -----------. TOTAL $139,155.66 -----------. . -----------. .' ""-~ ..... . - . . . . ., - . LATTICE MATERIAL CORPORATION ASSET DESCRIPTION ASSETS IN SERVICE IN 1994 GROWTH DEPARTMENT Puller #3/Schumacher : Provides additional crystal growing capacity for both silicon and germanium crystals. In 1994 Lattice Materials added the capability to grow germanium, which created an additional full time position within the company. SLICE DEPARTMENT Sinks for saw room : Additional feature necessary for expanding production capacity. SHAPING DEPARTMENT Centerless wheel balancer : production tool for changing and balancing grinding wheels. Provides efficient method to assure quality and consistency. Edge grinder : Provides added ability to finish edge on parts without the need to send elsewhere for final processing. Value added process. VS-4 Anton 4" block set : Tooling for production equipment. Bridgeport CNC Mill : Provides for contouring capability. A value added process now done in house instead of sending out for finishing. Edge beveler : Provides value added process. Curve generator and Grinding wheel set : Provides ability to produce curved optics for the first time in 1994. R & C Curve generator'#G150 : Additional curve generating capability. POLISH DEPARTMENT Spitfire polisher #1 : Provides additional polishing capacity. Spitfire lapper #2 : Provides additional lapping capacity. f" ., . . . , . - ." p.2 1994 In service description, cont. QUALITY Clean/dry air system : This is a compressor which assists in machine operation. The Dry Air System removes water vapor from the air which can cause rust. Scratch dig standards : Quality control process not previously applied at the manufacturing level. Comparator : Quality control instrument, a value added process. ETV tool : Quality control on curve generator parts. Clean room cabinets and tables : Additional storage necessary for expanding production capacity. . LATTICE MATERIALS CORPORATION ATTACHMENT TO EXPANDING BUSINESS APPLICATION ASSETS TO BE PLACED IN SERVICE IN 1995 DATE OF DATE IN AMOUNT DESCRIPTION PURCHASE SERVICE ---------------------------------------------------------------------.-----------. PRODUCTION GROWfH DEPARTMENT Grower Mods JUN 95 JUL 95 S,700 SLICE DEPARTMENT 22" STC Saw JAN 95 APR 9S 23,000 27" STC Saw JAN 9S MAY 95 3S,6S0 Graphite Demount APR 9S JUL 95 3,800 SHAPING DEPARTMENT Kellenburger Grinder MAY 9S AUG 95 37,000 Blanchard MAY 9S APR 95 25,000 CNCMill FEB 9S MAR 95 26,000 Curve Generator-#2 Model1S0 JAN 9S MAR 95 17,2S0 Curve Generator-#3 Model1S0 JUL 94 JAN 9S 2,800 . Curve Generator-#4 Model 300 JAN 95 MAR 95 28,750 POLISH DEPARTMENT Polish Area Facilitation JAN 95 APR 9S 5,000 Clean Sinks JAN 95 OCT 9S 11,000 Bevel/Lap Sinks JAN 95 MAY 9S 3,000 Spitfire Polisher #3 OCT 94 JUN 95 19,000 Staging JAN 9S MAY 95 3,000 Cybeq Edger NOV 94 AUG 9S 29,000 Lappe r -benchtop JUL 94 JUL 95 2,775 QUALITY Interferometer-ZYGO PTI JAN 9S JUL95 7,500 Spectrop hotomete r MAY 9S MAY 9S 15,000 -----------. TOTAL PRODUCTION 300,22S -----------. -----------. OFFICE EQUIPMENT -OTHER Savin Copy Machine JAN 9S JUN 95 6,000 Manufacturing Software JUL 9S JUL 95 10,000 Compute r Hardware/Periperals VAR 95 V AR 9S 10,000 Company Vehicle FEB 9S FEB 95 19,1 00 -----------. TOTAL OTHER 45,1 00 -----------. ~ -----------. TOTAL $34S,325 -----------. . -----------. I~ . . , . . . - ~ . LATTICE MATERIALS CORPORATION ASSET DESCRIPTIONS ASSETS IN SERVICE IN 1995 GROWTH DEPARTMENT Grower Modifications : Upgrades of furnace controls with newer microprocessors. Also allows for configuring the machine differently for different size charges of different materials. SLICE DEPARTMENT 22" STC SAW : ID saw for cutting crystal materials using a very thin diamond blade. Slicing losses are typically less than 0.015 inches. The 22" is the outside diameter of the blade. This saw will cut product up to 5 inches in diameter. 27" STC SAW : ID saw for cutting crystal materials using a very thin diamond blade. Slicing losses are typically less than 0.015 inches. The 27" is the outside diameter of the blade. This saw will cut product up to 7.5 inches in diameter. Graphite Demount : Heated bath to demount the graphite used in the slicing process prior to final clean. SHAPING DEPARTMENT Kellenburger Grinder : Universal grinder used for cylindrical grinding, cones, and lathe type operations. precision to one millionth of an inch. Blanchard : Model 18. Used for grinding large rectangular blocks of material with precision accuracy. CNC Mill : Computer numeric control vertical mill used for grinding unusual shapes repeatably. Model 150 Curve Generator #2 : Grinds a spherical radius on a flat lens up to 6 inches in diameter. Radius can be either convex or concave. Model 150 Curve Generator #3: Grinds a spherical radius on a flat lens up to 6 inches in diameter. Radius can be either convex or concave. This model 150 is an older version of the one listed above. Model 300 Curve Generator #4: Grinds a spherical radius on a flat lens up to 12 inches in diameter. Radius can be either convex or concave. ~ . . - ~ .. LATTICE MATERIALS CORPORATION ASSET DESCRIPTIONS CONT. POLISH DEPARTMENT Polish Area Facilitation: Addition of new equipment requires The expansion and rearrangement of the polishing area. Some facilities will need to be moved such as high purity water, air, and slurry delivery systems. Clean Sinks / Clean Line Automate : Final clean before shipment. utilizes heated ultrasonic baths to remove any process residues. Add a chain pull mechanism for automating process. Incorporate temperature and pH monitoring of baths to standardize process. Bevel/Lap Sink : Dual sinks for the cleaning of lapped parts as well as the lapping templates. Includes staging benches in and installation. Spitfire Polisher #3 : Polishes both sides of an optic simultaneously. Has large 40" polishing plates for large volumes. Staging : Bench top area both before and after a process for holding work-in-process. Cybeq Edger : Grinds an edge bevel on the sides of product to help reduce chips and scratches during the lap and polish processes. Uses a cam following mechanism to allow for the edging of unusual shapes. Benchtop Lapper : Small lapper used for processing witness pieces for the spectrophotometer. Production Lapper : Used to remove slicing damage from the optic prior to polishing. QUALITY Interferometer: Measures the flatness of a polished surf~ce. Spectrophotometer : Measures the amount of light at a given frequency that passes through an optic. Used as a quality test of the material.