When it was announced that xAI was coming to my hometown, I knew it was just a matter of time before we learned how our local leaders were going to get bamboozled. Looks like some of those chickens have come home to roost, according to Samuel Hardiman at The Daily Memphian:
Elon Musk’s artificial intelligence company is expected to pay more than $30 million in combined Memphis and Shelby County property taxes, according to records obtained by The Daily Memphian.
But the final property tax bill is significantly lower than what it could be based on xAI’s reported investment in Memphis, amounting to a tax break for a company that did not formally receive one.
The company is being taxed on a total investment of $2.2 billion, well shy of the $12 billion the Greater Memphis Chamber touted throughout the past year, according to its personal property tax card obtained by The Daily Memphian.
The lower tax bill is the result of the company and government working together to downplay xAI’s equipment in its overall taxes:
The lower-than-expected bill comes after local tax officials said they worked with the company to strategically shield equipment from being taxed. The process amounted to something similar to a tax break for a company that did not seek one upon arriving in Memphis and Shelby County last year.
Perfect.
This news comes on the heels of environmental and community groups saying that xAI has increased its usage of gas turbines without permission.