Tags: SpaceX, Headquarters, Hawthorne
Publication: BizJournals.com
Publication Date: 10/31/2012

Production floor at the SpaceX headquarters in Hawthorne, Calif. Image credit: SpaceX

SpaceX has signed a deal with the city of Hawthorne, Calif. to maintain their main offices there at least until 2022. The deal – unanimously approved by a City Council vote – to keep the 1-million-square-foot headquarters in their soil, means the city has agreed to reduce taxes and place a $260,000 cap on annual business license fees. This means SpaceX would pay more as its revenue grows but on a flat rate.

Additionally, Hawthorne is also giving the company the possibility to expand its facilities with a reduction of 75 percent on the planning and building fees.

The city currently perceives roughly $475,000 a year from SpaceX in property taxes, gross receipts, employee sales taxes, and commercial utility taxes, and it’s now expecting to perceive approximately $600,000 in fees every year from SpaceX.

Hawthorne officials expect to receive about $600,000 a year in fees from SpaceX once its current expansion is complete, Daily Breeze said. The city currently receives about $475,000 a year from gross receipts, property taxes, commercial utility taxes and employee sales taxes.

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