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Columbus Suburb Offers Verizon $4.2 Million Tax Break

Phillip Dampier March 27, 2013 Public Policy & Gov't, Verizon 1 Comment

hilliardThe city council of Hilliard, Ohio is offering Verizon $4.2 million in tax breaks to move 1,500 Verizon employees to the community of 28,000 and hire 500 new employees to join them.

The 10-year tax deal will give Verizon a 50 percent incentive on income tax withholding for amounts in excess of $72 million, according to a report by ThisWeek. In 2015, the first full year of the incentive, Verizon’s payroll is estimated to reach almost $90 million.

Verizon is also applying for tax credits at the state level.

Jeff Brown, an attorney representing Verizon, called the agreement “truly a partnership between the entities.”

map hilliardCritics call it truly short-changing local government.

Citizens for Tax Justice note this is not the first time Verizon has been offered tax breaks by Hilliard. In 2008, the city granted $3.4 million in tax subsidies and abatements to relocate 500 call center jobs (300 from out-of-state) to Hilliard. The state of Ohio also approved a 40 percent, five-year tax credit valued at $380,140. Another five-year tax credit amounting to $253,000 over five years was also granted later that same year.

Citizens for Tax Justice believes Verizon has successfully pitted communities against one another to compete for jobs and local investments at the same time the company is cutting both:

Despite being highly profitable,Verizon manages to avoid billions of dollars in federal and state taxes through tax code maneuvers as well as by seeking special tax breaks in the name of economic development. It also shortchanges local governments through property tax abatements as well as assessment challenges.

Whatever savings have come from this tax dodging have not been used to invest in the company or its workforce.Verizon has been eliminating jobs and investing less. During the past three years,the total number of employees at Verizon has fallen by more than 40,000 and the company’s capital expenditures have declined by $1 billion.

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Ian L
7 years ago

Hilliard should give them more tax breaks…$1000 per premise wired for FiOS in the area…and kill the job-related breaks. Sure, call center jobs are work, but the city should incentivize something that will stick around even when the next town offers Verizon a better deal.

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Stop the Cap!