Football season is over, but the New York Giants are still in a fight. The Giants faced off against East Rutherford, New Jersey in state tax court last week.
The battle is over whether or not the Giants should pay property tax on their practice facility, the Timex Performance Center. According to this story on NorthJersey.com, the issue resolves around the legislation that created the Meadowlands 40 years ago.
Back then, the suspension of property taxes attracted the New York Giants (who used to play at Yankee Stadium in the Bronx, New York) to cross the Hudson River and play in East Rutherford, New Jersey. Now the question is whether or not the law absolves the Giants from paying property tax on ancillary facilities. The news story also notes that it’s possible the Giants could, if the Court rules against them, be forced to pay property taxes on their $1.6 billion replacement to the original Giants Stadium.
In any event, states and localities use taxes to attract businesses. This usually leads to predictable shenanigans, such as the Iowa film credit fiasco. Of course, some states do this in reverse, raising their taxes so that business figure out that the grass is greener on the other side of the fence.
As for the Giants, a loss in state tax court would likely be a loss for their fans as that additional cost would undoubtedly be passed on to their customers in the form of higher ticket prices.
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