Taxes are not the reason


I was doing some research on how we, in Auburn Hills and our region, can continue to be the place where people decide to come to live and do business. This includes looking at what the decision makers look at and what eliminates some communities from consideration.

Granted, some of these issues change as the times change, but most are pretty consistent over time. An example would be in the “quality of life” factors, Housing Cost and Housing Availability flip flopped from three to four from 2009 to 2010.  The top 10 in Quality of Life did not change between 2009 and 2010, they just changed positions.

Likewise, in Site Selection Factors the top 10 moved some between 2009 and 2010 but again mostly just switching positions. One of the reasons I was doing more research is because someone in Lansing was explaining taxes are not high on a company’s decision on where to locate. Wow, I thought that’s a major change, they quoted Area Development Corporate Survey and said taxes were not in the top five reasons. Well, I found the ADC survey and they were kind of right. Corporate tax rate was number 6 on the list, but, number 5 was state and local government incentives and number 3 was tax exemptions. This tells me 3 of the top 6 things businesses deal with are related to taxes.  Funny how you can turn survey results to say different things. I guess the lesson is making sure you verify information before repeating it.

By the way, number 1 and 2 flip flopped between 2009 and 2010, with Highway Accessibility taking the number 1 spot from Labor Cost.

Leave a Reply

  • Peter Auger, Auburn Hills City Manager

    Peter Auger, Auburn Hills City Manager

    Thoughts on running a city, daily musings, and everything in between.