FISHKILL – Only three people spoke at a public hearing into a proposal to grant the Gap Corporation a sales tax exemption on the purchase of equipment to equip the company’s Fishkill distribution center. A large section was destroyed last August by an arsonist and the facility is being rebuilt.
The company has asked the Dutchess County Industrial Development Agency to allow it to waive the sales tax on the equipment, said IDA Executive Director Sarah Lee.
“They are spending $110 million on taxable equipment and they are looking for the tax exemption on that, which equals about $8.9 million,” Lee said.
Items to be exempt from sales tax include that used for construction, installation, furnishing and equipping of the new facility.
Impact on the community through indirect sales tax and income tax revenue is estimated at $19.7 million.
The IDA is expected to approve the exemption at its March session.