Saturday, September 23, 2023 7:21 am

A taxing situation in Eloy as Otto Industries faces major business loss

Article and photo by Lindsey Gemme

Eloy Enterprise

Otto Industries has had a satellite plant here in Eloy for 10 years, but staff says that number crunching the city’s sales tax in conjunction with the 2006 Arizona “transaction privilege tax” is threatening the company’s future here.

Diane Thomas with Otto Industries, flanked by Sales Area Manager Todd Donovan and Eloy Plant Manager Don Vogel, sat down with council in late August to introduce their company, and their growing sales disadvantage.

Otto Industries, a manufacturing plant of refuse and recycle containers, is a family-owned company based out of Charlotte, N.C. It began in Germany in the 1930s, and  was brought to the U.S. soon after that.

They built their 37,000 square foot facility here in Eloy in 2002 on a 20-acre parcel, and operates 24 hours a day mass producing rollout trash receptacles for cities and organizations. They’ve shipped recycle and refuse containers to cities all across the U.S., and even the world, including Brazil, and the Philippines. They also have mass produce contracts for Rubbermaid, and stock stores like Home Depot. With up to 75 colors to choose from, and ability to label using decal stamps or in-laid plastic images, and being the leader in “bear-proof” trash receptacles, Otto has a great product to give.

“We actually have on staff a couple of product designers in Charlotte that do nothing but look at ways of coming up with new ideas for carts that put us on the cutting edge of trash bin technology,” Eloy Plant Manager Don Vogel said.

“It’s not very glamorous, but everybody needs one,” Company CFO Diane Thomas said. “Trash cans are our bread and butter.”

But the butter is going on a little thin in Arizona due to the state privilege tax, Thomas explained.


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