FedEx will NOT pay at least $38.6 million in County taxes or $41.2 million in State taxes over 20 years.  Thus, FedEx is exempted from paying an average of $1.93 million a year in County revenue and $2.06 million a year in State revenue—a $4 million tax break per year. 

Since the airport is tax-exempt, FedEx pays no property tax to Guilford County on the hub building or the land it occupies (an estimated loss of $27.6 million to Guilford County over 20 years).

Also, according to the incentive package crafted by state Commerce Department officials, FedEx will not be buying or paying taxes on the $72 million conveyor/sorting equipment inside the building (a 20 year loss of $4.1 million in county tax revenue).

Further, the North Carolina legislature changed the law last summer to exempt airplanes assigned to air carrier hubs “with a sorting facility” from local property taxes.  (The law is written so that only FedEx qualifies for this tax break.  FedEx has not received this tax break in either Indiana or Texas.)  This results in a 20 year loss to Guilford County of at least $6.9 million.  The tax on FedEx’s air fleet is now “the single largest tax that FedEx pays to the county for existing operations.” (3/14/99 N&R)  The effect of this legislation is that other NC counties with FedEx facilities (Wake, Mecklenburg, New Hanover, Craven, and Lenoir) can continue to tax FedEx’s airplanes.  Only Guilford cannot. 

? Do you think the State should have the right to tell Guilford County what taxes it can or cannot collect?  To say that some counties can tax FedEx airplanes, but ours cannot?
? Do you think FedEx is being a “good corporate citizen” by NOT paying these property taxes to the community that other businesses and citizens are expected to pay?
? In addition to all the above, PTIA has promised FedEx they will be exempted from any home buyouts or noise compensation.  (Letter dated 4/8/98 from PTIA to FedEx attached to 4/8/98 Minutes of Closed Session.)
? You, the taxpayer, need to be aware that when those hired to promote the FedEx hub say “the FAA will pay this,” and the “airport will pay that,” and “the State will pay this…” that it is ultimately YOU the taxpayer who will pay through increased fees charged to customers who use airports, through the state gasoline tax, etc. You need to be aware that  if Guilford County cannot collect the above cited property taxes, the tax burden on the citizens of this county is going to be greater than it would be if FedEx did not have all these tax breaks.  Who is going to pick up the tab for all that FedEx is NOT paying?  YOU, the taxpayer!