Apple Denied Texas Tax Break : Policy: County governing board cites computer company’s position on benefits for same-sex partners.

Commissioners of a Texas county on Tuesday refused to give a tax break to Apple Computer Inc., citing the company’s policy of granting the same health benefits to partners of gay and lesbian employees that it does to heterosexual spouses.

Apple had sought $750,000 in tax abatements over seven years to build an $80-million, 700-employee complex in Williamson County, just north of Austin.

County commissioners rejected the tax abatements, 3-2.

“We’re very disappointed at this time,” Apple spokeswoman Lisa Byrne said. “We’re going to regroup and review our operations. It is unlikely we will locate in Williamson County.”

Debate on the tax break for several weeks centered on Apple’s domestic partner policy.

“I cannot in good conscience extend that benefit to them (Apple) because of the conviction I have that same-sex partners is wrong,” Commissioner Greg Boatwright had said earlier.

After the vote, Charlie Culpepper, the mayor of Round Rock, which is the largest town in Williamson County, said he disagreed with the commissioners.

“I don’t agree with the idea of same-sex marriages, but government needs to stay out of business. Families need jobs,” he said.

Culpepper said it is too early to tell if the vote would hurt economic development. The area around Austin has been a leading destination for high-tech companies because of the city’s educational base and low tax, real estate and labor costs.

Gay and lesbian rights advocates derided the commission’s decision.

“This is the first time that a panel of this kind has used its authority to punish a company that has independently decided to treat its gay and lesbian employees fairly,” said David Smith, of the National Gay and Lesbian Task Force.

Apple is the world’s second-largest maker of personal computers.