Nashville approves $175M Oracle tax breaks

May 05, 2021 at 09:11 am by robmtchl


Davidson County/Nashville councilmen approved an historic abatement of property taxes of $175 million over 25 years! What will it mean long term for the citizens of Middle Tennessee? Good question.

First, what does it mean for property taxes? What was approved was this: Half of all property taxes generated from the city, for a period of 25 years, will be used to pay off the government insured bond for infrastructure.

The other half was pledged to create "affordable housing." No one has yet defined what affordable housing means. Is that more housing projects? Is it low interest loans? Sounds good but where is the substance? 

How will it impact our state culturally? That is the $1.2 billion question! The ink has not even dried on the deal and Oracle is already boasting it will bring its West Coast values to Tennessee. I realize Oracle is currently in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. Something to ponder.

Not every "deal" is bad, but not every "deal" is good either. Some are neutral. It will impact Middle Tennessee in a manner similar to Nissan coming to Rutherford County in the early 1980s. It should be recognized that past history tends to predict future behavior. Wat is Oracle's past history? Find out HERE.

Especially focus on the indictment on bribing governments and their ban from participating in GSA contracts. Maybe it is "old news." Maybe not? One thing is certain, when you invite a wolf into your home you better keep an eye on grandma!



Comments

Nasville politicians are a pile of it...
Follow up: The incentives from the State of Tennessee include two highway underpasses connecting to Oracle's waterfront campus, as well as one of the largest jobs grants in state history; over $100 million dollars!. So, lets say $20 million for two underpasses,$175 million in local property tax abatements and at least $100 million in job grants. Thats about $295 million in taxpayer incentives.
@robmchl, How much have State Farm & Nissan gotten from Rutehrford County over the years?
I don't know. But you can reach a tipping point where the cost in infrastructure really does not support the community investment. West Virginia is paying people $12,000 dollars to move there IF they are remote workers who can work from home by computer. Those individuals are unlikely to be heavy users of public services and likely have higher disposable income.
I think the Nashville MSA has reached that tipping point. That's why all the counties in it (including Rutherford) have had to raise taxes so much in the past five years. We've given away our Class-A commercial tax base to attract jobs that have only increased demand for housing and government services without paying for it.
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