Columbus has approved a tax abatement for Rightway Fasteners, a local manufacturer planning to expand production capacity in Woodside Industrial Park.
City council members unanimously approved a tax abatement that is expected to save Rightway, 7945 S. International Drive, an estimated $633,302 in personal property taxes over a 10-year period, said Robin Hilber, assistant director of community development for the city.
As part of the agreement, the company has pledged to invest $12 million in production equipment and add 24 jobs by the end of 2023, including nine new jobs this year, Hilber said.
“It’s an incentive that communities give in order to encourage investment and it helps the company out a little bit,” she said. “…It gives them a little bit of a break on their taxes for the investment they’re making in the community.”
The company will use the tax savings to partly offset the costs of purchasing and installing new equipment to increase production capacity, including three coating lines, three shot blast machines, two cold forging machines and one heat treatment furnace, said Ron Miller, general manager at Rightway Fasteners Inc.
With the abatement, the city expects to collect around $425,000 in additional personal property taxes from the company over the 10-year period once the equipment is purchased and installed, Hilber said.
The company’s personal property tax burden will be gradually increased over the 10-year period, but the company will not owe any personal property taxes during the first year, according to a copy of the abatement agreement.
After the 10-year period, the city estimates that it will start collecting around $90,000 in personal property taxes from Rightway Fasteners, Hilber said.
Founded in 1991, Rightway Fasteners provides fasteners for the automotive industry. The company’s largest customer is Toyota, Miller said.
