A new policy draft submitted to the Chattanooga Industrial Development Board for discussion Monday would expedite business tax incentives by excluding legislative debate on certain deals if approved in the coming months by the board, the Chattanooga City Council and Hamilton County Commission.
Right now, all payment in lieu of tax agreements, known as PILOTs, are debated before the City Council and County Commission, which vote in each case on whether the tax break is in the best interest of the area.
Still, because the state constitution forbids local governments from showing favor to any business, the council and commission cannot legally be party to the contract, meaning their approval isn’t technically required.
The Industrial Development Board, which was created to enter into economic development agreements on behalf of local government and is controlled by appointed members selected by the Chattanooga City Council, has always had the final say on PILOT agreements, but has never gone against the recommendations of the council or commission.