Property assessor questions ‘Bluff City Law’ tax break
Back in August when anticipation for the now-canceled NBC drama “Bluff City Law” was at its peak, dozens gathered in an East Memphis hotel ballroom for a public meeting to discuss an incentive package for the network’s parent company, Comcast.
That day, a $1.4 million tax break was approved at the monthly meeting of the board of directors for the Economic Development Growth Engine (EDGE) for Memphis and Shelby County.
The tax abatement would apply to Comcast’s personal property — things like fiber, transmission lines, switching gear and other items — and the savings would be passed along to NBC. It represented the first of four years of savings for the company that would continue if the show was renewed. It was just a portion of a larger incentive package that Memphis Tourism and the state of Tennessee supplemented.
In the crowd was Memphis Mayor Jim Strickland, a representative from Shelby County Mayor Lee Harris’ office, Memphis Tourism CEO Kevin Kane, state officials and NBC executives. Everyone was in favor of the tax break, which was approved unanimously.
But at a Tuesday morning press conference, Assessor Melvin Burgess raised questions about the incentive.
“My team and I strongly believe that there is absolutely no public benefit that would justify Comcast and NBC receiving $1 million per year of taxpayers money that I can recognize,” Burgess said. “Accordingly, I believe that Shelby County Government should challenge the approval of the PILOT and the loss of tax revenue.”
Since the show was canceled, EDGE President Reid Dulberger said the future years of the PILOT would be canceled and Comcast would only see benefits from the first year. That provision was built into the PILOT agreement, Dulberger said.
Despite Burgess’ criticism and the show’s cancellation, Dulberger said the incentive was appropriate and the benefits were clear.
“This program was a love letter to Memphis in an hour-long network drama and the promotional value was significant,” Dulberger said, adding that the show created jobs, pumped millions of dollars into the local economy and resulted in thousands of nightly bookings at local hotels.
Still, Burgess, who emphasized that he supports the use of property tax breaks to attract businesses in many cases, said it’s difficult for him to watch a corporation like Comcast see more than $1 million in savings while Shelby County residents struggle to pay their property tax bills amid a pandemic that has done great harm to the local economy.