Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 11, 1995 TAG: 9501110057
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: PAUL DELLINGER STAFF WRITER
DATELINE: RURAL RETREAT LENGTH: Medium
Officials from Klockner Pentaplast of America, Inc., which has operated a plant for 16 months in Rural Retreat, approached the county Board of Supervisors on the subject Tuesday.
Plant Manager Louie Pritchett told the board that Klockner's board of directors has approved the funds to double its size. It also would increase employment from 100 now to 225 or 250, he said, and boost its annual payroll from $2.5 million to as much as $3.5 million.
Such an expansion would involve adding machinery valued at $20 million or more, he said.
But county taxes on machinery is an issue. Company Treasurer Eric Sigler said Klockner paid more than $137,000 in machinery and tools taxes for its first full year, or 20 percent of the total machinery and tools tax collected by the county. The additional machinery would boost that to more than $285,000, or 32 percent of the county's total take from the tax.
``We feel this is an unfair burden,'' Sigler said.
The board agreed to try for an adjustment with Klockner in the next four to six weeks. Board Chairman Mark Munsey and Supervisor Charles Dix, who represents Rural Retreat, will work with Commissioner of Revenue Mary ``Sis'' Cassell and the Klockner representatives on either changing the basis for the tax or changing the rate.
Munsey said he had gotten complaints about excessive taxes on machinery and tools from two other companies since Klockner raised the issue.
Klockner makes plastics for a variety of applications including food packaging. Its headquarters are in Gordonsville, where it opened its first plant in 1979.
by CNB