Language Selection

English French German Italian Portuguese Spanish

Dell's N.C. plant the target of a lawsuit

Filed under
Legal

Attorneys with the North Carolina Institute for Constitutional Law (NCICL) are expected to file legal papers Thursday to challenge a record-setting package of tax breaks given to Dell to ensure that the No. 1 computer maker built a 527,000-square-foot facility in the middle of the state.

The state of North Carolina, the city of Winston-Salem, Forsyth County and three nonprofit organizations will also be named in the lawsuit, former North Carolina Supreme Court justice Robert Orr, who heads the NCICL, said in an interview Wednesday. The complaint is a declaratory judgment and asks the State Supreme Court in Raleigh to review whether Dell's package deal violates the U.S. Constitution's commerce clause, which says Congress (and by extension, the states) cannot make laws that favor commerce in one state over commerce in another.

The North Carolina General Assembly authorized a record $242 million in tax incentives for Dell back in November 2004. That was followed by an additional $37.2 million in subsidies from Winston-Salem and Forsyth County officials.

Though local and state governments often work together to entice midsize and large corporations to set up shop in their communities, Dell's deal is unique in that it's the largest in state history.

Pharmaceutical giant Merck received a substantial tax incentive package in early 2004 when it moved out of New Jersey, Orr said. Semiconductor manufacturer Cree brokered a deal with officials in the state's celebrated Research Triangle Park, when the company hinted that it would like to move north to Virginia.

Dell's deal came at about the same time the 6th U.S. Circuit Court of Appeals ruled that a tax credit given by the state of Ohio to DaimlerChrysler was in violation of the federal commerce rules.

Orr said he and his group are not against Dell moving in; they just question the methodology.

"The concern is that Dell comes in and says they don't want to pay taxes for the next 20 years in a state where other companies are doing their part," Orr said. "We want them to complete their project in North Carolina, but we want them to pay their fair share to the state."

Dell spokesman David Frink would not comment on how the incentives break down on a yearly basis but said the tax credits Dell is receiving are tied to the company's performance.

Full Story.

More in Tux Machines

today's howtos

Linux 4.15, Linux 4.16, and Linux Foundation's CNCF and CII

  • Linux 4.15 Gets Fixed To Report Current CPU Frequency Via /proc/cpuinfo
    A change recently in the Linux kernel led the CPU MHz reported value via /proc/cpuinfo to either be the nominal CPU frequency or the most recently requested frequency. This behavior changed compared to pre-4.13 kernels while now it's been fixed up to report the current CPU frequency.
  • Linux 4.16 Will Be Another Big Cycle For Intel's DRM Driver
    We are just through week one of two for the Linux 4.15 merge window followed by eight or so weeks after that before this next kernel is officially released. But Intel's open-source driver developers have already begun building up a growing stack of changes for Linux 4.16 when it comes to their DRM graphics driver.
  • CNCF Wants You to Use 'Certified Kubernetes'
  • Open Source Threat Modeling
    Application threat modeling is a structured approach to identifying ways that an adversary might try to attack an application and then designing mitigations to prevent, detect or reduce the impact of those attacks. The description of an application’s threat model is identified as one of the criteria for the Linux CII Best Practises Silver badge.

Linux World Domination and Microsoft Corruption in Munich

Programming/Development: 'DevOps', NumPy, Google SLING

  • 5 DevOps leadership priorities in 2018
    This week, DevOps professionals gathered in San Francisco to talk about the state of DevOps in the enterprise. At 1,400 attendees, the sold-out DevOps Enterprise Summit has doubled in size since 2014 – a testament to the growth of the DevOps movement itself. With an ear to this event and an eye on the explosion of tweets coming out of it, here are five key priorities we think IT leaders should be aware of as they take their DevOps efforts into the new year.
  • NumPy Plan for dropping Python 2.7 support
    The Python core team plans to stop supporting Python 2 in 2020. The NumPy project has supported both Python 2 and Python 3 in parallel since 2010, and has found that supporting Python 2 is an increasing burden on our limited resources; thus, we plan to eventually drop Python 2 support as well. Now that we're entering the final years of community-supported Python 2, the NumPy project wants to clarify our plans, with the goal of to helping our downstream ecosystem make plans and accomplish the transition with as little disruption as possible.
  • Google SLING: An Open Source Natural Language Parser
    Google Research has just released an open source project that might be of interest if you are into natural language processing. SLING is a combination of recurrent neural networks and frame based parsing. Natural language parsing is an important topic. You can get meaning from structure and parsing is how you get structure. It is important in processing both text and voice. If you have any hope that Siri, Cortana or Alexa are going to get any better then you need to have better natural language understanding - not just the slot and filler systems currently in use.