After years of debate over the use of tax breaks to attract business and housing development to Chattanooga, the city has compiled a list of all its current tax deals and their performance.
Website information
PILOT Agreements
City Spokeswoman Lacie Stone said in an email Tuesday the city has posted a laundry list of information for the 51 so-called payment-in-lieu-of-tax, or PILOT, agreements on the city’s ChattaData site.
The data set compares the companies’ agreed upon commitments to job creation, average wages, the amount of money companies pledged to invest in their properties and how the companies are holding up their end of the bargain.
Chattanooga Mayor Andy Berke said the city has been focused on attracting business, jobs and housing to the area. But residents deserve to keep tabs on companies that are having taxes waived.
“This data set allows citizens to see that our agreements now have tougher consequences for companies that don’t meet their goals, a better application process, increased reporting, and a new economic development fee. These improvements are beneficial to both companies and our constituents,” Berke said.
Berke’s office highlighted the more than $1 billion in economic investments over the last two years from tax agreements.
But in March, tax break watchdog Helen Burns Sharp brought attention to the costs.
Her research showed more than $26 million in taxes waived for nearly 40 companies in 2014 alone.
She said in March the city and county governments should re-evaluate how they award tax breaks for businesses and housing developments.
“Tax incentives need to be reserved for projects involving significant public benefit where the incentive really makes a difference in a company’s location or expansion decision,” Sharp said. “We have lots of needs in our community, and we are seriously eroding our revenue base with the number and magnitude of PILOT agreements.”