Transport Topics Online  
The Newspaper of Trucking and Freight Transportation
Welcome  Guest  Log In         
1/5/2016 11:00:00 AM Write a Letter to the Editor Write a letter to the Editor

FedEx Threatens to Move Tennessee Technology Center if It Doesn't Get 20 More Years of Tax Breaks

FedEx is threatening to move its massive information technology center out of Collierville, Tennessee, if the town government doesn't give the company millions of dollars worth of additional tax breaks over 20 years.

The Memphis-based shipping giant is Collierville's biggest employer, with 2,500 high-paying jobs at the 10-building information technology campus on Bailey Station Road, said John D. Duncan, the town's director of economic development. The town advertises the company's presence as it tries to attract more corporate headquarters and similar office jobs. Duncan said he supports the additional tax breaks to keep FedEx in town: "It's a crown jewel."

He said the company hasn't mentioned a possible relocation site. "As they would tell you, they're looking at all options and alternatives as they make their analysis," he said.

FedEx is in discussions to renew one or more of its three leases at the Collierville tech center, FedEx spokesman Jack Pfeiffer wrote in a statement. "Our investment in the people and local economy is proof of our commitment to the area, but as with any negotiation, we must consider all options," he wrote. He said that if the 400 outside contractors who work on the technology campus are included, the number of workers there is 2,900.

He also reiterated a statement that a FedEx official made last year — that FedEx might move additional facilities out of the Memphis metro area if it doesn't get the tax breaks known as payments in lieu of tax, or PILOTs. "PILOTs have helped the Memphis metropolitan area successfully attract and keep companies like FedEx, which, with more than 30,000 team members in the Memphis area, is proud to be the largest private employer in the region." FedEx's demand for local tax breaks in Collierville reflects a bigger pattern of the company seeking to reduce the amount it pays to governments. FedEx receives property tax breaks from other local governments in the Memphis area and similar support in other states. The company successfully lobbied the Tennessee Legislature to vote last year to limit the jet fuel tax it paid, saving it millions.

2 Next >>

By Daniel Connolly
The Commercial Appeal, Memphis, Tenn.

 

Distributed by Tribune Content Agency, LLC.



Follow Transport Topics on Subscribe to get up to the minute news briefs and more from our feeds. RSS Twitter Twitter Facebook Facebook

© 2016, Transport Topics, American Trucking Associations Inc.
Reproduction, redistribution, display or rebroadcast by any means without written permission is prohibited.


  RELATED ARTICLES

 
LATEST NEWS



 
LATEST JOBS
Follow Us

Newsletters

TTExpress
This free daily newsletter delivers the latest headlines.

TT Executive Suite
This subscriber-only newsletter program tailors your news.

Services

Advertising

EMU
iTech
© American Trucking Associations, Inc., All Rights Reserved TTNews.com Privacy Statement