February 16, 2007

North Carolina questions role consultants in securing Google tax breaks

“Google’s nine-figure tax break package to bring a computer center to Lenoir is raising questions about the role commissioned consultants play in pumping up the packages. Lawmakers, some of whom voted for legislation that benefited Google, plan to investigate whether companies should disclose the fees they pay the consultants and whether they should register with the state, like paid lobbyists. Google’s lead negotiator in landing tax breaks that could be worth up to $260 million over 30 years has been a commission-based consultant on similar deals in the past… Google said tax break negotiations were handled in-house, by Rhett Weiss, a lawyer. Weiss is the founder of DEALTEK, a California-based company that specializes in development, expansion and location strategies. The company still exists, and Weiss is listed as the chief executive. But he said Monday in an interview with the Observer that he is a salaried employee of Google.”

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