Mullican Flooring requests termination of 2017 incentive agreement with city and county

Mullican Flooring in Johnson City is ending its agreement for tax abatements with the city’s Industrial Board, due to hardships experienced during the pandemic. This payment in lieu of taxes, or PILOT, agreement was designed to support Mullican’s plant expansion in 2017.

The agreement required the company to hire 200 additional employees by April of this year, yet despite increasing hourly wages and hiring bonuses, Mullican says it continues to struggle meeting the requirement due to labor shortages related to the pandemic. By ending the agreement, the company will have to repay all taxes and incentive grants that were abated from 2017. City and county commissioners will vote this month on whether to approve the termination request.

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