Tax incentives to spur development – both economic and housing development – have long been controversial in Chattanooga.
To many, the incentives seem like discounts frequently awarded to give already high-rolling developers years of tax-free holidays, while they amount to additional tax burdens for us ordinary Joes and Janes.
But to city, county and Chamber of Commerce officials who often have to fight tooth and nail to lure those developers to build here instead of Memphis or Nashville or even Ringgold, Ga., the incentives are make-or-break deal sealers.
In the end, there is no one-size-fits-all answer about the true value of tax breaks for development, known as Payment in Lieu of Taxes – PILOTs, for short. And all too often, the benefit or boondoggle accountability we all seek on the question of tax breaks doesn’t become apparent until long after the mortar is dry.
So Chattanooga Mayor Andy Berke’s announcement last Tuesday, that the city and county will retool a tax incentive program for developers who build rental property downtown to a more open-ended one providing incentives only for affordable housing, brought mixed reviews.