RALEIGH
The legality of tax breaks that lure a company to North Carolina is once again before a panel of judges.
The state Court of Appeals was scheduled Monday to hear a challenge by taxpayers who argue 2006 tax incentives approved by the Legislature to attract Google Inc. violate the state constitution. Lawmakers agreed to exempt large Internet data centers from sales and use taxes.
Google agreed to build a server farm in Caldwell County. Combined state and local tax breaks for the project could be more than $200 million.
Attorneys for Google point out that state courts already have upheld the legality of public funds or tax breaks to attract new business twice in the last dozen years.
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