Spansion seized for $9M in overdue tax

AUSTIN (KXAN) - Travis County officials seized Spansion's Austin locations for delinquent property taxes Thursday, totaling more than $9.5 million in taxes, penalty, interest and fees. Though the seizure does not hinder the daily business operations, the seizure does prohibit moving any equipment from the facility until taxes are paid in full.

Spansion's Japan location filed for bankruptcy just Wednesday, spurring Travis County officials to act quickly in seeking full payment for the company's delinquent taxes in Austin. Travis County Tax Assessor-Collector Nelda Wells Spears said the tax seizure allowed them to act quickly.

"In this case, our primary concern is the Del Valle School District, which stands to lose $5.6 million in tax revenue," said Spears. "We owe it to Del Valle school children and taxpayers to do everything we can to collect these taxes.”

Travis County Chief Deputy Tax Assessor-Collector Dusty Knight said the Del Valle School District is losing 10 percent of its budget because Spansion failed to pay its taxes. Of the $9.5 million in delinquent fees, $8 million of that amount comes from personal property and $1.5 million comes from real estate. Personal property encompasses any moveable equipment such as desks, computers and fabrication machines.

The following entities are also due taxes:

• Del Valle: $5,636,557.44

• Travis County: $1,314,104.17

• City of Austin: $1,279,035.90

• Austin Community College: $363,329.43

• Travis Healthcare District: $216,466.93

Thursday afternoon, Spansion's director of public relations, Holly L. Burkhart released a statement regarding the tax compliance filing.

"Spansion was surprised by the action of the County Tax Compliance Division today given the company's years of service to the Austin community, its long record of promptly paying its taxes and the fact that the company discussed its current tax obligations with the agency. The payment owed is less than two weeks late. Since 2003, in Austin the Company has paid approximately $34 million in real and personal property taxes. We do not expect any interruption in business operations while we continue our discussions with the tax authorities.

Spansion has never missed a tax payment in the past and is working with the tax authority to resolve the issue expeditiously.

As an active member of the Austin community since 1979, Spansion has always striven to be a model corporate citizen, supporting math and science education in primary and secondary schools, assisting families with basic needs such as food, shelter and health care as well as a number of other community development programs. We recognize the numerous social programs that are funded by large taxpayers like us in the county and take our obligations very seriously.

Spansion is proud of its contributions to the community, which include:

• the donation in 2007 of more than $250,000 and nearly 1,000 hours of community service to non-profits, schools and agencies, and invested in basic needs programs
• significant investments in the Montopolis neighborhood with funding for a walking trail, volunteers and money for Habitat for Humanity, support for Meals on Wheels and Reading is Fundamental
  
• holding an on-site drive for the Capital Area Food Bank in response to Hurricane Ike
  
• sponsoring annual blood drives and providing a $10,000 annual donation to International Red Cross;
  
• the company's award-winning Commute Solutions program, encouraging employees to reduce congestion on Austin streets through alternative transportation."

 

 

 

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