Beef plant's tax records will be public
Aberdeen News
American News
11/30/2006
South Dakota (SD), US
American News Editor's note: News Line provides answers to questions about what's going on in northeastern South Dakota. The question - which might have been edited - was either recently called in to the American News News Line or was generated from discussions American News employees are hearing around town.
Q. Northern Beef Packers is going to get a tax break in the form of a tax increment financing district. Does that mean that the company's records will be open to the public? What is the plant going to cost the taxpayers? Are the taxes going up?
A. All tax records are public information, said Sheila Enderson, Brown County treasurer. The amount of property taxes paid and when they are paid are available to the public. So is the way the TIF money is divided to pay expenses, said Colleen Skinner of the state Department of Revenue and Regulation.
In a TIF district, property taxes generated by new developments are used to pay for improvements on that property. The increase in the value of the property as improvements are made raises the taxes charged on the property. In a TIF, the difference in taxes between the original assessed value and the improved value - the increment - goes toward the cost of the improvements as opposed to a local government. That continues until TIF-qualified costs are paid off, up to 20 years. And that information is available to the public.
Skinner said a business' overall finances are not open to the public just because a TIF is granted.
Northern Beef Packers officials say the plant will pay roughly $743,000 in property taxes a year. That total includes money to the county, school district and township. Until the TIF is paid off, that money will be used to pay TIF-related expenses. After the TIF is paid off, local governments will share the money. Granting the TIF does not increase property taxes for Brown County residents.
aberdeennews.com
A Community Divided Over Beef Plant
KSFY
Almost 2,000 signatures are now in the hands of Brown County Commissioners regarding the Aberdeen beef plant.
"Several of the commissioners have indicated in the past few weeks that they would consider accepting the petition if we got sufficient numbers available," says Attorney, Dave Fransen. "There was no indication yesterday as to what they may do."
Some residents of Aberdeen are upset that the beef plant will be receiving TIF, or tax increment financing. This program allows the beef plant up to 20 years to repay property taxes. People who signed the petition want to force this into a county wide vote. Fransen says, "One thing that we found in circulating these petitions is that there is some deep division in this community over this issue and they need to be resolved so the community can move past that." He says, "The quickest way for that to happen is for the county commission to accept these petitions and schedule it for a vote."
State's Attorney Mark McNeary says that Brown County Commissioners are under no obligation to bring this to a vote because state law says that administrative actions are not subject to a referendum. Mayor Mike Levsen is in support of the beef plant. "Even though they may have 1,800 signatures, 18,000 Brown County voters decided not to sign that petition. There is broad support for this in the area and I'm sure that will prevail." Levsen says, "We need this for our beef industry."
If Brown County Commissioners vote against a referendum the petition could eventually appear before a judge.
The Brown County Auditor is now in the process of verifying the signatures of the petition. Commissioners will decide on Tuesday whether there will be a county wide vote.
By: Dawn Crawley
ksfy.com
Aberdeen News
American News
11/30/2006
South Dakota (SD), US
American News Editor's note: News Line provides answers to questions about what's going on in northeastern South Dakota. The question - which might have been edited - was either recently called in to the American News News Line or was generated from discussions American News employees are hearing around town.
Q. Northern Beef Packers is going to get a tax break in the form of a tax increment financing district. Does that mean that the company's records will be open to the public? What is the plant going to cost the taxpayers? Are the taxes going up?
A. All tax records are public information, said Sheila Enderson, Brown County treasurer. The amount of property taxes paid and when they are paid are available to the public. So is the way the TIF money is divided to pay expenses, said Colleen Skinner of the state Department of Revenue and Regulation.
In a TIF district, property taxes generated by new developments are used to pay for improvements on that property. The increase in the value of the property as improvements are made raises the taxes charged on the property. In a TIF, the difference in taxes between the original assessed value and the improved value - the increment - goes toward the cost of the improvements as opposed to a local government. That continues until TIF-qualified costs are paid off, up to 20 years. And that information is available to the public.
Skinner said a business' overall finances are not open to the public just because a TIF is granted.
Northern Beef Packers officials say the plant will pay roughly $743,000 in property taxes a year. That total includes money to the county, school district and township. Until the TIF is paid off, that money will be used to pay TIF-related expenses. After the TIF is paid off, local governments will share the money. Granting the TIF does not increase property taxes for Brown County residents.
aberdeennews.com
A Community Divided Over Beef Plant
KSFY
Almost 2,000 signatures are now in the hands of Brown County Commissioners regarding the Aberdeen beef plant.
"Several of the commissioners have indicated in the past few weeks that they would consider accepting the petition if we got sufficient numbers available," says Attorney, Dave Fransen. "There was no indication yesterday as to what they may do."
Some residents of Aberdeen are upset that the beef plant will be receiving TIF, or tax increment financing. This program allows the beef plant up to 20 years to repay property taxes. People who signed the petition want to force this into a county wide vote. Fransen says, "One thing that we found in circulating these petitions is that there is some deep division in this community over this issue and they need to be resolved so the community can move past that." He says, "The quickest way for that to happen is for the county commission to accept these petitions and schedule it for a vote."
State's Attorney Mark McNeary says that Brown County Commissioners are under no obligation to bring this to a vote because state law says that administrative actions are not subject to a referendum. Mayor Mike Levsen is in support of the beef plant. "Even though they may have 1,800 signatures, 18,000 Brown County voters decided not to sign that petition. There is broad support for this in the area and I'm sure that will prevail." Levsen says, "We need this for our beef industry."
If Brown County Commissioners vote against a referendum the petition could eventually appear before a judge.
The Brown County Auditor is now in the process of verifying the signatures of the petition. Commissioners will decide on Tuesday whether there will be a county wide vote.
By: Dawn Crawley
ksfy.com