Sunday Poll: After Millions in Tax Incentives, Has IKEA Been A Net Positive or Net Negative?
It has now been over a year since IKEA opened for business and it appears to be boosting tax receipts:
The Swedish retailer’s 63110 ZIP code saw a 40 percent spike in state sales tax revenue from October 2015 through June 2016 compared with the prior-year period, according to the latest available data from the Missouri Department of Revenue.
The period with Ikea generated $277 million in state sales tax revenue versus $197 million in the prior-year period without Ikea. (St. Louis Business Journal)
An increase of $80 million, though not all can be attributed to IKEA. It’s unclear now much additional revenue went to the City of St. Louis. But it didn’t come cheap, from February 2014:
Ikea’s plans to open a St. Louis store next year moved ahead Friday when a city panel voted to back a $32 million tax incentive for the project.
Members of the city’s Tax Increment Financing Commission voted unanimously to approve the subsidy. The vote also backed a separate $5.1 million subsidy for a residential building planned for an area just west of the Ikea site.
The Swedish furniture retailer has yet to specify the cost of its St. Louis store, planned for the southwest corner of Forest Park and Vandeventer avenues, but a spokesman said it will exceed $100 million.
The TIF projects are part of a $167.7 million TIF city officials approved for the Cortex bioscience district in 2012. The district is split into 10 TIF areas that must be activated individually as the area develops. (Post-Dispatch)
The store employees hundreds, each paying the 1% earnings tax.
The poll will be open until 8pm.
— Steve Patterson