State may audit Tyson
Closings may trigger tax incentives audit
Mercury News
Associated Press
Feb. 18, 2006
OMAHA, Neb. - The closing of Norfolk and West Point beef plants could trigger state audits of Tyson Foods' business development and tax incentive agreements.
Tyson or its predecessor, IBP Inc., had pledged in 1997 to invest $10 million and create 100 new jobs in West Point and Dakota City and promised in 2004 to invest $23 million and add 1,000 workers at the Norfolk plant, said Tom Norris of the state Revenue Department.
Agreements for sales and income tax credits under the state development measure commonly referred to as LB775 don't forbid layoffs or plant closings, he said, but the companies have to meet the law's minimum requirements to claim the tax credits.
Tyson bought South Dakota-based meatpacker IBP in 2001.
Tyson spokesman Gary Mickelson said Tyson has qualified for the tax credits because it did invest millions in northeast Nebraska and created hundreds of jobs.
"We're disappointed we now have to close the plant and are in contact with Nebraska revenue officials to determine how this will affect our taxes in the future," he told the Omaha World-Herald in a story published Saturday.
Information from: Omaha World-Herald
mercurynews.com