TAMCO
TAMCO is a division of City Electric Supply, a national company with locations in 30 states and headquarters in Dallas, Texas. TAMCO’s local manufacturing and distribution operations had been scattered among several buildings in Port St. Lucie and the company wanted to expand into a new 411,000-square-foot facility.
Many municipalities were in interested in hosting the growing company, including Dallas and Charlotte, North Carolina. But, the company’s 210 employees wanted to remain in, and invest in, their hometown of Port St. Lucie. The tax abatement allowed that to happen and, in September of 2018, ground was broken on TAMCO’s state-of-the-art facility, kickstarting the Tradition Center for Commerce and the city’s Jobs Corridor.
In return for TAMCO’s $38 million investment and a commitment to add another 50 jobs within five years, the company received a tax abatement for their new building and new equipment. The abatement was for 100% of some property taxes for five years, with the percentage ramping down in each of the next five years. Had the tax abatement not been available, TAMCO would likely have been moved out of the state, its 210 workers would have lost their jobs, and the company would be paying zero taxes here.
Even though TAMCO receives a property tax abatement, they are paying far more taxes today than they paid prior to the expansion. In 2017, the company paid $85,593.67 in property taxes on its Enterprise Drive and Peacock Boulevard properties, plus tangible personal property taxes. In 2020 even with the abatement in place, the taxes and assessments on TAMCO’s new building were $750,538.10, a more than eightfold increase – but that’s just one part of the story.
Prior to moving into their new building, in 2019 TAMCO paid $78,696.67 in tangible personal property taxes on its equipment. That number almost doubled to $153,105.79 in 2020, again even with the abatement. The company’s total taxes and assessments in 2020 totaled $903,643.89 versus $425,999.76 in 2019.
Because TAMCO chose to locate in the Southern Grove area of Tradition, taxpayers gained an additional advantage. By purchasing the parcel from the Port St. Lucie in 2018 for $2,207,200, TAMCO took over the annual Community Development District, Special Assessment District, and stormwater fees, as well as taxes due to agencies such as the schools and fire district. These taxes and assessments totaled $186,817.84 in 2018 and $349,569.17 in 2019. Had the city retained ownership of that land, the taxpayers would still be funding these payments.