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July 25, 2007 2:30 PM PDT

Google sued over North Carolina tax exemptions

by Elinor Mills
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It's pretty common for large companies to get tax breaks and other incentives to expand their operations in U.S. cities and states. Apparently, things aren't going so well for Google in North Carolina though.

First, there was the charge that the search giant tried to silence North Carolina politicians as the parties negotiated the deal. Under the agreement, Google will invest around $600 million and employ more than 200 people in a data center in Lenoir in exchange for tax breaks worth at least $89 million over 30 years.

Now, a libertarian advocacy group is challenging those incentives and suing Google.

The North Carolina Institute for Constitutional Law says a state law designed to give Google tax exemptions, as well as a $4.8 million state Job Development Investment Grant given to the Web giant, violate various provisions of the state Constitution, according to the Triangle Business Journal.

The plaintiff previously sued to block more than $200 million in incentives to lure Dell to Winston-Salem, but the case was dismissed and the ruling has been appealed, the report said.

Asked to comment on the lawsuit, a Google spokesman e-mailed this statement: "We believe the lawsuit is without merit and we will defend against it vigorously. While the courts decide, we will continue with construction, hiring, and the planning of our future in North Carolina."

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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Bravo for the libertarians
by nicmart July 25, 2007 4:29 PM PDT
This is just an example of corporate welfare which comes out of
the wallets of taxpayers. I don't object to Google keeping its
money, and it ought to, but not as a result of other individuals and
businesses paying more. In the end, the problem is not Google,
but the politicians who take form some taxpayers to bribe others.
Reply to this comment
echo that
by weegg July 26, 2007 7:51 AM PDT
I'm with you on this
by sambrowna August 8, 2008 3:50 AM PDT
A Pennsylvania crusader has slapped Google with a $5bn lawsuit, claiming that the world's largest search engine is endangering his personal safety.

With a suit filed in federal court, Dylan Stephen Jayne insists that the company is guilty of "crimes against humanity" because its name turns up when his social security number is scrambled and turned upside down.

sambrown
North Carolina Treatment Centers
by sambrowna August 8, 2008 3:49 AM PDT
A Pennsylvania crusader has slapped Google with a $5bn lawsuit, claiming that the world's largest search engine is endangering his personal safety.

With a suit filed in federal court, Dylan Stephen Jayne insists that the company is guilty of "crimes against humanity" because its name turns up when his social security number is scrambled and turned upside down.

sambrown
North Carolina Treatment Centers
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