Two towns in the north of New Jersey, USA may receive financial aid after a pharmaceutical giant announced its departure from the city.
Roche, which is one of the largest drug companies in America, currently has a 119 acre site that straddles two towns, Nutley and Clifton. As you can imagine, when this mega commercial property closes its doors for good, the financial impact on these towns will be immense.
There will be around 2,000 job losses and a total of $14 million (£9 million) in tax losses, which equates to 10 per cent of what the two towns collect in tax from firms. However, some workers are relocating to New York, when the new Translational Clinical Research Center opens later this year.
To help reduce the burden, lawmakers are looking to introduce a piece of legislation which grants tax relief to a town when a large business leaves. Senator Ronald Rice and Assemblyman Ralph Caputo are the two behind pushing the bill. If successful, the towns could save $5 million (£3.2 million) in tax.
Speaking of the loss of the drug company, Assemblyman Caputo said: “When a business, like Roche, announces they’re moving their U.S. headquarters out of state, the number of potential jobs lost gets all the attention.
“What gets overlooked is the serious financial, property tax impact such moves have on the towns that host these businesses. That needs to change.”
Do you agree that towns should receive financial aid when a large company leaves? Do you think the UK should adopt a similar piece of legislation or do you think the money could be spent better elsewhere?
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