Statement from New Jersey Policy Perspective to the New York City Industrial Development Agency on proposed property tax breaks to NBC Universal, Inc. for MSNBC jobs
March 8, 2007
MSNBC left New Jersey with taxpayers holding the bag. Now the company wants breaks from New York City to move there – after taking breaks from New Jersey for the same jobs that will be moving to Manhattan. TV-watchers are familiar with channel-surfing; this is location-surfing, another example of companies playing states or cities off against each other while seeking the best tax-break deal. The sooner that government officials catch on to this, the better it will be for taxpayers. It’s happening all over the nation. No jurisdiction feels it can unilaterally disarm, but whoever makes the first move will actually be taking a major step in the right direction.
New Jersey gave MSNBC $7.8 million in breaks from one program and sold $167.5 million in bonds to purchase equipment it then leased to MSNBC – giving up approximately $8 million in sales tax revenue. In return for these breaks granted with much fanfare in 1996, MSNBC was supposed to stay in the state for 15 years. It left after 10. Memo to New York: don’t count your chickens.