Apple Tuesday released an 80-page report detailing the economic benefits of Apple’s current headquarters. Along the way, the iPhone maker hopes a peek at the potential flood of cash headed toward local government coffers will help gain city approval of its upcoming iSpaceship campus.
Among the highlights: Apple maintains a local payroll of $159 million for 16,000 employees, making it the largest sole employer in Cupertino. Creation of Apple’s Campus 2 (aka iSpaceship) would create 7,400 “new high-quality jobs.” And, new campus construction will add 9,200 full-time construction jobs to the local economy over a three-year period, the report adds…
The report is titled ‘Economic and Fiscal Impacts Generated by Apple in Cupertino – Current Facilities and Apple Campus 2.’ The table below is pretty self-explanatory.
Among the more interesting points made in the document is the impact Apple employees have on local spending and the company’s sizable impact on the Cupertino tax base.
- Apple’s 16,000 employees in 2012 accounted for 40 percent of Cupertino’s entire job base. Of that 16,000, only 1,285 live in the city. If the company’s new headquarters is built on schedule, it would expand the payroll to $236 million, bringing the total number of Apple employees living in Cupertino to just over 1,900.
- Approving the iSpaceship campus would also boost cash spent locally by more than $2 billion, according to the Apple report. The company and its employees spent $4.6 billion on purchases in 2012, a figure that could rise to $6.7 billion should city lawmakers approve Apple’s construction plans.
The city also could directly benefit from Apple’s expansion, including increased tax payments and departmental assistance:
- Apple says it paid $9.2 billion in local taxes, the largest portion being $6.4 billion for sales. Those overall tax payments would increase to $13 billion should Apple Campus 2 be approved.
- The company would also pay $68 million for road and park improvements should the new campus go forward.
The report emphasizing the tax advantages of allowing the new campus to be built follows Apple CEO Tim Cook’s testimony last week before a Senate subcommittee.
Apple: Cupertino-based employees $2B salary in 2012. On completion of $AAPL Campus 2, base salary will exceed $2.9B @cnbc
— Jon Fortt (@jonfortt) June 4, 2013
Cook responded to critics of the company’s tax avoidance strategies by claiming Apple paid all taxes owed (France disagrees).
Apple is also thought to be doubling lobbying efforts on tax fights.
The full report can be found on Apple’s website.