TERRE HAUTE, Ind. (WTHI) - The Terre Haute City Council is asking representatives of Sony DADC to appear for a hearing regarding the company's tax abatements.
Sony announced layoffs several months ago.
WHY DO GOVERNMENTS GRANT TAX ABATEMENTS?
Governments generally agree to abate or reduce the taxes of businesses and other taxpayers to promote economic development, job growth, redevelopment of blighted or underdeveloped areas, and other actions that are beneficial to the government or its citizens.
For a company to get a tax abatement they often pledge to create a certain number of jobs and offer certain salaries. Any changes over time are reflected in a CF1 form.
The Terre Haute City Council learned Thursday night Sony DADC failed to file the CF1 form making the company non-complaint.
Now representatives of Sony DADC will be asked to a special hearing to explain why the paperwork was not done.
Councilman Karrum Nasser explains this happened last year. At that time the company explained the demand for its products, like Blu-ray discs and CDs, was dwindling due to streaming services.
When asked if the company should continue to have taxes abated, Nasser said they've been good neighbors.
"Sony doesn't just make Blu-ray discs. They are in the process of doing new technology with medical devices that maybe we can attract that technology to our community and provide more jobs."
Sony DADC has multiple tax abatements set to expire in three to six years.
The hearing is set for July 12th at 5:30 pm.
Also at the meeting, the council unanimously showed it's support for a future downtown convention center.
The council passed a resolution to support the Vigo County Council is its efforts to create a Terre Haute Convention Center.
City council members say the move would bring tourists and $40 billion to the area through visitor spending.
The county council will hold public hearings on a one percent food and beverage tax increase. It would generate around $2 million a year and help fund the convention center project.
The city council was split on another resolution but it passed. The council voted 5-4 to authorize a temporary loan from the Terre Haute Sanitary District Operating Fund to the Terre Haute Sanitary District Bond Fund.