The Detroit News. It's payback time again for 13 companies granted tax breaks by the township. The companies must contribute 5 percent of the abated value of the tax break to one of the groups for as long as they receive the tax abatements. The 13 local companies face a deadline today to tell local authorities to what groups they'll donate. The companies were given tax breaks on land and equipment inside office and industrial buildings in the township.
Tax abatements are a popular way for communities to lure or keep businesses in town.
Requiring companies to donate a portion of the tax break to charity was started several years ago in Canton Township, but was reversed two years ago by state officials, who said it was a form of arm-twisting. The 13 Canton companies still making contributions were exempted from the state order because they agreed to the contributions before the state ruling in 1998. It's clear that the business community is the driving force in the development of Canton. Several of the 13 companies contributing to local charities are chamber members, he said. Most tax abatements granted in the township shave 50 percent from the value of property and equipment taxed by local authorities.