Group files lawsuit over tax breaks
Friday, December 21st, 2007
By Chris Fitzsimon
Up to 5 companies being given unfair advantage, it says THE ASSOCIATED PRESS Friday, December 21, 2007
RALEIGH
A group that has challenged special tax incentives for Dell Inc. and Google Inc. sued again yesterday, this time focusing on a law designed for two tire-makers that could get cash from the state for upgrading their plants.
The lawsuit filed by the N.C. Institute for Constitutional Law argues that legislation passed in a special session three months ago should be blocked because it gives an unfair tax advantage to as many as five companies that could get up to $60 million in combined grants.
North Carolina courts have upheld tax credits and other incentives that favor select companies since the N.C. Supreme Court declared them legal in 1996.
The law was written primarily to help Goodyear Tire & Rubber Co. upgrade its Fayetteville plant and Bridgestone Corp. with improvements to a Wilson plant. Legislators said that the financial assistance would keep the plants from closing and preserve nearly 5,000 high-paying jobs.
But according to the lawsuit filed on behalf of three Wake County citizens and a taxpayers’ group, the incentives don’t serve a public purpose, as required by the state constitution, and gives preferential treatment to the businesses. (more…)
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