Hynix closure will hurt tax base

Hynix logo

This is a press release courtesy of Lane County

The pending closure of Hynix, one of Lane County’s largest employers, will impact the local economy with the immediate loss of family-wage jobs and the future reduction of property tax revenue. 

According to Lane County Assessor Anette Spickard, the effect on property taxes will not be immediate.

Property values are determined as of Jan. 1 each year. The October 2008 tax roll will reflect Hynix’s value as of Jan. 1, 2008, at which time it was still in operation.

The property tax effects of any plant closure before Dec. 31, 2008, will be reflected on the October 2009 tax roll, including penalties for disqualification from the West Eugene Enterprise Zone.

The State Department of Revenue will need to determine the residual value of the manufacturing plant after the closure. After that appraisal occurs, Lane County Assessment and Taxation will be able to calculate what the impact will be to taxing districts on an on-going basis. The land and structures will continue to be taxable.

In 2007, Hynix paid approximately $4.6 million in property tax, of which:

    • $375,000 went to Lane County
    • Just over $2 million went to the City of Eugene, not including the urban renewal districts.
    • Eugene School District 4J received about $1.46 million
    • Lane Community College received nearly  $200,000

The Eugene-based manufacturing plant is one of Lane County’s largest employers.

The Lane Workforce Partnership is forming a local rapid response team to meet the needs of the affected Hynix employees. The Workforce Partnership provides on-site services, including information on how to:  apply for unemployment insurance, register in iMatchSkills, and apply for a Workforce Investment Act training scholarship; in addition to providing on-site workshops on interviewing techniques, resume writing and job search strategies, and access to one-on-one appointments with career advisors.