The Stanley County Commission listened to a sales and use tax rebate funding pitch by Scott Amundson, with the Governor’s Office of Economic Development (GOED), during the commission’s August 13 meeting.
Amundson told the commission that GOED has two sales and use tax rebate programs. This year, these programs were extended to livestock development.
Qualifying counties are free to use the funds as they see fit, with no strings attached, provided two conditions are met: A.) the commission has to okay qualifying applications for use permits. B.) The county has to encourage development of livestock projects. Counties and the Department of Environment and Natural Resources will still have to follow existing ordinances, comprehensive plans, policies and procedures.
Only the 22 of the state’s 66 counties that have zoning ordinances may apply for the GOED funds, he said.
Well before any conditional use permit hearing with the county, the owner of a proposed project applies to the Board of Economic Development for a reinvestment payment. Upon completion of the project, the company submits an affidavit. The project owner assigns the sales and use tax rebate to the county. The sales and use tax is distributed to the county.
“We do all the paperwork, not your auditor or anyone else,” said Amundson. “Get your economic developer guy and our representative guy together. The developer pays sales and use tax on the new project’s start-up costs. The maximum the state would collect is $450,000. Most of the project costs will be taxable; resulting in, say, $225,000 of taxes collected. Once the project is complete, the county would receive the sales and use tax that has been collected — $225,000. There is no minimum size to a project, and multiple projects at one time are possible.”
The commissioners will look into such livestock development projects.