A Carson City vitamin company is expanding for the second time in two years and seeking $68,000 in tax abatements from the state.
Vitamin Research Products Inc. plans to add eight full-time employees to its staff of 71 in the next six months and invest $813,000 in new equipment by the end of the year, said Chief Financial Officer Ted Johnsen.
The Carson City-based company develops, manufactures and distributes nutritional supplements. Vitamin Research relocated to a 55,000-square-foot building at 4610 Arrowhead Drive from a smaller building on Highway 50 East in December 2004.
The company is seeking $40,000 in sales and use-tax abatement on equipment that it plans to purchase in the next two years. Vitamin Research is also seeking $24,000 in personal-property tax abatement over a span of 10 years, and $4,000 in payroll tax abatement. The property and sales tax abatements affect Carson City's tax roll. The state collects the payroll tax.
"We feel that by virtue of these expansions we are doing here that we are contributing to the economic development of the area," Johnsen said. "These abatements will help us to compete nationwide."
He said 85 percent of the employee-owned company's products are sold outside Nevada and internationally.
"(The abatements) will help us gain the edge in the beginning, and after that, we will be able to carry it on our own," Johnsen said.
He said the company usually doesn't spend more than $250,000 a year on its equipment. The additional equipment will be used to expand the company's branch in Singapore, which it opened this past year. Johnsen said they are expecting the aging U.S. population to buy more health supplements.
"We've utilized the (tax abatement) program in the past and it's been helpful," said Rob Watson, company president and chief executive officer. "It's nice, as a small business, to get the help of the local government. We're excited about being in this area and we're committed to the long term."
The company received a two-year sales and use-tax abatement for $7,469.
Nevada law provides for economic incentives for companies expanding operations in the state. Larie Trippet, business development manager for Northern Nevada Development Authority, said Vitamin Research meets the three requirements to receive tax abatements.
"The minimum capital investment for this company would be $92,000, and they're doing $813,000," he said. "The minimum number of added jobs to qualify is six and this company is adding eight."
Trippet said Vitamin Research must also hire new employees at or above the state average wage of $17.34. The company plans to hire the eight new employees at an average wage of $21.75.
The Carson City Board of Supervisors will decide at its meeting today whether they support the tax abatements. The Nevada Commission on Economic Development will meet at 1 p.m. Jan. 18 to consider the incentives application. The meeting will be held by video teleconferencing at the Legislative Counsel Bureau office in the state Legislative Building.
-- Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.
On the Net
Vitamin Research Products, Inc.
http://www.
vrp.com