Abatement plan

The majority of a proposed 90 percent tax abatement being requested for a major expansion of the Lawrence Packerware plant could become a moot point if a measure being considered by the Kansas Legisla

The majority of a proposed 90 percent tax abatement being requested for a major expansion of the Lawrence Packerware plant could become a moot point if a measure being considered by the Kansas Legislature becomes law.

Of the $118 million Packerware is considering investing in its Lawrence plant, about $24.5 million would be invested in real estate and $93.5 million in equipment. A proposal by Gov. Kathleen Sebelius would eliminate property taxes on machinery and equipment purchased after 2007, a measure that would take most of the Packerware investment off the local tax rolls even without a local tax abatement.

Despite concern over its impact on local governments, the proposal to eliminate property taxes on equipment has drawn favorable response from many legislators who see it as a good way to support business in the state.

City commissioners are scheduled to consider the 90 percent tax abatement at Tuesday’s meeting. The abatement is significant, but so is the investment Packerware, which was founded in Lawrence, is planning to make in this city. Especially if state law ends up eliminating the tax on the new equipment at the plant anyway, it would be too bad if denying the abatement request prompted the company to take its expansion elsewhere.