As you probably know, many counties and cities lure employers with property tax breaks. The city of Wichita where Big Dog Motorcycles is located considers denying extended tax breaks to employers failing to add jobs and expand at the rates they projected when the city exempted property taxes for them.
Of course, cutting jobs is happening because of the economic downturn, but also in some cases because new technologies are replacing employees, particularly in manufacturing. Wichita city officials want council members to approve tomorrow Tuesday new rules which could lead companies like Big Dog Motorcycles to have its tax exemptions reevaluated.
As promised at the time of obtention of these tax exemptions Big Dog finished its investments in a new building and added 79 jobs when it had projected 40. But according to city documents, since then Big Dog has laid off 221 workers, The question raised by the new proposed city rules is that if property tax exemption extensions are denied to a company, would not other cities offer tax breaks to companies bringing their current employees.