Giving Compass' Take:

• Cities and states often offer tax incentives to businesses to encourage them to bring jobs and economic growth the region. However, this process is not always transparent for the residents who already pay taxes in the area. 

• How can policies ensure transparency in this process? How can citizens become more informed about tax incentives in their area? 

• Find out how Amazon could narrow their list using inclusion to produce benefits for the ultimate location.

As Amazon scouts out locations for its second headquarters—a monolithic corporate campus expected to host 50,000 employees, pithily dubbed HQ2—cities and states continue to play the role of desperate suitors, propositioning the company with ever-more-ludicrous perks and incentives.

Taxpayers in the 20 finalist locations may not actually know how much they’re giving up: Although the details of some proposals have become highly publicized, many of the negotiations are happening in behind closed doors. Which brings up a new set of questions: As government officials set aside tax dollars for Amazon’s benefit, how much do taxpayers deserve to know about how the money will be spent?

In November, reporter Emily Opilo and her employer, central Pennsylvania newspaper The Morning Call, requested a copy of the HQ2 proposals submitted by Pittsburgh, Philadelphia, and the Lehigh Valley. Citing non-disclosure agreements with the state, Pittsburgh and Lehigh declined to provide their proposals, while Philadelphia provided a heavily redacted copy that blacked out 38 pages of material relating to financial incentives. Opilo and The Morning Call appealed to the Pennsylvania Department of Community and Economic Development (PDCE), which also denied the request. PDCE’s argument? The applications contain “trade secrets,” and cannot required to be disclosed.

But The Morning Call appealed to the Pennsylvania Office of Open Records (OOR)—which rejected the trade secrets rationale. The Commonwealth of Pennsylvania now has 30 days to release its incentives offer to the public, or appeal the ruling.

Read the full article on tax incentives by Joe Fassler at The New Food Economy