Lux nail spa and spa Intex is in the process of closing a $4.5 million facility in northern Georgia, according to a company statement.
The decision comes after the state announced a tax cut for 2018 that will cost the company $4,723,000.
Lux said in a statement that it has “no immediate plans” to reopen the facility.
“Lux is proud of our record of providing outstanding care for our clients and is continuing to invest in the future of our facility and in our team,” the company said.
“However, it is important to note that, as of the close of business on December 29, 2018, we are no longer in compliance with the state’s tax cuts and have received a tax refund for the tax year in which we closed.”
In a statement released to the Atlanta Journal-Constitution on Tuesday, Lux’s CEO, Michael Hensley, said the company was “in the process” of closing the facility and has not yet determined the tax bill.
Hensleys statement also said that Lux will remain open to all customers and employees in the state of Georgia.
Horseshoe Falls Mayor Joe Hargrave, who is also a Democrat, has called on the state to extend the state tax cuts until 2020.
In a message to employees and their families, Hargrove said that “we cannot wait any longer for our state to enact meaningful tax reform that protects the middle class.”
Hargrrave also said the state has “the most important tax cuts in the nation.”
“I urge you to stay focused on your families and your jobs and do everything you can to keep the state in good hands,” he said.
Lux has operated in the metro Atlanta area since 1999.
The Georgia Department of Revenue, the state Department of Business and Economic Development and the Department of Taxation are investigating the company’s decision to close the facility, according with a news release.
Lux’s closing comes at a time when the federal tax code is set to expire for the first time in 50 years.
Under the current tax code, which was passed by Congress in the 2016 Tax Cuts and Jobs Act, the federal government gives tax breaks to companies that pay taxes and give tax breaks for people who work for them.
The bill also extended tax cuts for businesses that hire and hire more workers.
The last tax breaks expire on March 31.
“We are going to continue working hard to make sure that our tax base is protected, including extending tax credits that we know are helping people,” Hargrabas said in an interview with WSB-TV.
The Atlanta Journal Constitution reported that the state could lose millions of dollars in revenue from Lux’s tax bill because of the tax cuts.
“In 2018, the tax rate for individuals and businesses with $10 million or more in income, adjusted gross income, increased by a total of $4 million, and for small businesses with less than $10,000 in income the rate increased by $3 million,” the news release stated.