Tax Freezes Feel Heat -- Number of Pilot Plans Drop After Incentives Put Under Tighter Restrictions

Summary

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Even before Memphis and Shelby County governments fell upon financial hard times, the practice of giving tax incentives to some local businesses was controversial.

In general, critics have said the incentives amount to nothing more than corporate welfare, increasing the weight of everyone else's tax burden.

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Tax Freezes Feel Heat -- Number of Pilot Plans Drop After Incentives Put Under Tighter Restrictions

In particular, critics said the local practice of awarding property tax freezes had gotten out of control, with far too many freezes granted to companies that provided relatively little economic benefit in return.

In response to such criticisms, Shelby County commissioners and Memphis City Council members approved several changes to the guidelines companies must follow to qualify for tax freezes through the Industrial Development Board.

The rules now require higher standards for salaries and benefits paid to the wo...

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