FTZ Tax Impacts Guide

The Foreign-Trade Zones Board recently issued a helpful guide which addresses the potential tax impacts of designing FTZ sites.

In certain states, there are taxes for which collections can be affected through FTZ Board action to designate FTZ sites (including sites of subzones).
Examples of such taxes include:

1) Ad valorem taxes on business inventories in states such as Texas, Louisiana and Kentucky.
2) Real property taxes in the state of Arizona.

When proposed FTZ designation of a particular parcel of land could result in a reduction in revenue collected locally for such a tax, the FTZ Board requires the
applicant to address the potential impact.

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Sandler, Travis and Rosenberg further explain the document here.