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

Games for GNU/Linux

  • Achieve Global Domination in Agenda, Coming to PC, Mac, Linux on September 21
    Agenda, a strategy simulation from Exordium Games where players control an evil organization seeking world domination, will come to Windows, Mac, and Linux on Sept. 21st, 2016. Players will direct covert operations to increase their control over countries' economies, political parties, militaries, science institutions and media outlets. Operations will entail everything from low key kickbacks to military leaders to the brazen assassination of political rivals.
  • Vendetta Online 1.8.385 MMORPG Drastically Improves Chat and Effect Delays
    Guild Software announced the release of a new maintenance update for their popular and cross-platform Vendetta Online MMORPG (Massively Multiplayer Online Role-Playing Game) 3D space combat title. According to the release notes, Vendetta Online 1.8.385 is an important milestone, and it's here to drastically improve the chat and effect delays reported by users during larger capship battles by implementing a new dynamic server packet-queuing and priority change system, which was tested internally with 200 close-proximity capships per battle.
  • Looks like Subnautica from the Natural Selection 2 developers won't get Linux support
    This is quite sad, it seems we have been left wondering for a while (years) about Subnautica, but a developer has now confirmed a Linux version is not being worked on.

Leftovers: Software

  • GNOME Music 3.22 to Offer Better Sorting of Songs in Albums and Artists Views
    GNOME Music 3.22 is on its way, as well as the GNOME 3.22 desktop environment, due for release next month on September 21, and it looks like we're now able to get an early taste of what's coming in GNOME's default music playback app. GNOME Music 3.22 Beta has been released, distributed as part of the first Beta development milestone of the upcoming GNOME 3.22 desktop environment, and it promises to offer better sorting of tracks in the Artists and Albums views, a "new playlist" entry to the Playlist dialog, and new keyboard shortcuts.
  • bitmath-1.3.1 released
    bitmath is a Python module I wrote which simplifies many facets of interacting with file sizes in various units as python objects. A few weeks ago version 1.3.1 was released with a few small updates.
  • NetworkManager 1.4 Released
  • NetworkManager 1.4: with better privacy and easier to use
    After we released version 1.0 of NetworkManager, it took us sixteen months to reach the 1.2 milestone. This means that it took over a year for some newly added features to reach the user base. Now we are releasing the next major release after just four months.

More on Linux 'Birthday'

  • Linux celebrates its 25th birthday today
    Today marks 25 years since Linus Torvalds sent out his industry-changing message, asking for help testing a new operating system he had devised. On 25 August, 1991, he wrote: “I'm doing a (free) operating system (just a hobby, won't be big and professional like gnu) for 386(486) AT clones. This has been brewing since april, and is starting to get ready. I'd like any feedback on things people like/dislike in minix, as my OS resembles it somewhat (same physical layout of the file-system (due to practical reasons) among other things).”
  • Linux, the world's most widespread OS, turns 25 years old
    While Linux may not be the first operating system you think of, it is one of the most significant computing platforms ever developed. Linux powers everything from the world's largest supercomputers to Android phones. Today, it turns 25 years old.
  • Fedora project leader Matthew Miller talks world domination on Linux's 25th birthday
    Linux is now a quarter-century old. August 25, 2016 marks 25 years since the day Linus Torvalds posted a message announcing Linux to the world. “I’m doing a (free) operating system (just a hobby, won’t be big and professional like gnu),” he wrote. Since then, Linux has taken the world by storm, powering millions of servers, a countless number of embedded devices, and most of the smartphones in the world—by way of Android.
  • Linux Turns 25 Years Old
  • The Queue: How did you discover Linux?

Open Source: Of the people, for the people, by the people

Open Source is the best option for e-Governance. Its open nature allows constant improvements from the open source community, and when built in the correct method using firewalls, the security is protected as well. The best part of the open source for Governments is that the overall cost of building these solutions are much less than other frameworks as it is built, improved, and maintained by a strongly, connect open source community. Truly… ‘of the people, by the people and for the people’. Read more