Tax Break Deal for Zaxby's
Tupelo council approves up to five-year property tax exemption for Zaxby's development
The Tupelo City Council approved a property tax break of up to five years for a new Zaxby's development owned by Tupelo Land Development LLC.
The item came before the council on Oct. 20 as part of a set of agenda amendments presented by Vice President Bentley Nolan, whose identity as the speaker is unconfirmed. Nolan described it as a "question on exemption from municipal property taxes, including taxes for the needs of the school district, for a period not exceeding 5 years," applying to "new privately owned developments located in a business improvement district" that are "being assessed in favor of Tupelo Land Development LLC, Zaxby's." The council approved the measure without recorded discussion.
The exemption covers both municipal and school-district property taxes on the development, which sits within a city business improvement district. Multi-year tax exemptions granted to named private developers function as a direct subsidy to the firm receiving them, the kind of incentive arrangement that draws scrutiny regardless of its merits. Details including the exact term, parcel and assessed value were not fully specified in the public record of the meeting.