Dan Johnson, Chattanooga Mayor Ron Littlefield’s Chief of StaffThe City Council unanimously approved a resolution Tuesday night to assess tax break programs on an individual basis until the Chattanooga Area Chamber of Commerce completes a study on how other municipalities handle tax incentives.
The city backtracked from a previous resolution set forth that called for a moratorium on payment in lieu of tax, or PILOT, programs.
“Let’s take on each as an individual,” said Dan Johnson, chief of staff for Mayor Ron Littlefield.
Some council members said this week the current formula for PILOTS is unfair to the city. Job creation tax breaks requires some money to be spent on education, but no property tax money flows to the city or county general funds.
Council members said that is problematic because the city provides fire and police protection to those industries or businesses getting the breaks.