The Board of County Commissioners is authorized to grant certain tax exemptions for qualifying projects, up to five (5) years, for non-retail commercial and industrial development pursuant to Idaho Code §§ 63-602NN, 31-714; and, Article 12, Section 2, Idaho Constitution.
The purpose of this section is to define qualifying projects, establish an application process, and provide the criteria for evaluating the level of tax relief to be authorized.
A. Qualifying Projects:
1. An application for property tax exemption under this section may include an investment in new or existing plant and building facilities. Plant and building facilities include buildings, structural components of buildings, related parking facilities, food service facilities, business office facilities and other building facilities directly related to the business making the plant investment.
2. An investment in any qualifying project shall not be less than $500,000 at all project sites within the county.
3. Plant and building facility investments do not include the investment in land or any infrastructure.
4. A renovation or remodel of an existing plant or building facility may be considered under this section if the investment in the renovation or remodel is $500,000 or greater.
5. Plants, building facilities, structural components of buildings and personal property associated with a plant or building facility must be owned or leased by the applicant in order to qualify under this chapter.
6. Plants and building facilities are eligible for property tax exemption under this section if the investment will be used for nonretail purposes that is either commercial or industrial. Qualifying non-retail commercial or industrial plants or building facilities may include:
a. Multi-use plants or building facilities that includes an investment of $500,000 or more in non-retail space.
b. Multi-family housing projects that include five or more units.
c. Qualifying multi-family housing projects do not include stand-alone units that are sold separately, such as condominiums, and housing units that occupancy is offered to any tenant for less than one hundred and eighty (180) days or fewer.
7. Applicant must be in compliance with Title 9 of the Valley County Code.
B. Application Process:
Any taxpayer may apply for property tax exemptions under this section for new or existing project sites provided the project proposal will meet all the criteria outlined in Idaho Code § 63-6022NN and this section.
Prospective applicants, or their authorized agents, may request to meet with the Board to engage in preliminary negotiations and discussions regarding eligibility. Applicants may operate under a pseudonym and meetings may be held in executive session under Idaho Code § 74-206(l)(e) if an agent of the prospective applicants with authority to negotiate is present, and when approved by the Board.
Prior to completing an application, prospective applicants should prepare a written project plan that addresses all requirements under Idaho Code § 63-602NN and this section. The project plan can be used during preliminary negotiations and must be included as part of any application. A document showing the nature and timing of investments and proposed exemptions should be part of the project plan.
1. Application must be made prior to construction, including receiving a building permit and beginning excavation at the project site.
2. Application shall be on a form provided by the Valley County Assessor’s Office. A sample form can be found under the Assessor’s Office on the Valley County website.
3. The application shall include a written project plan.
4. The application may be filed under a pseudonym, but no application will be granted until:
a. The applicant has secured the right to obtain the property; and
b. The applicant is prepared to make the project public.
5. The application package shall contain ten complete copies unless more are requested.
6. Once a complete application is received, the Board will schedule a public meeting and invite the public, all affected taxing districts, West Central Mountains Economic Development Council, urban renewal agencies and the Idaho department of commerce to participate.
C. Evaluation of Application:
Requests for a property tax exemption under this section will be considered by the Board taking into account comments received from affected parties and the criteria outlined in Valley County Code §§ 1-9-1 et seq. In addition, the Board will evaluate the following:
1. Information provided by the applicant that demonstrates or certifies that “but for the incentive,” the business would not locate in Valley County.
2. The investment will create jobs that pay competitive wages that exceed the average wage, including benefits.
3. The investment will provide significant indirect economic benefits.
4. The applicant is willing to agree to all terms and conditions imposed by the Board, including, but not limited to, recoupment provisions that might encumber project property.
D. Approvals or partial approvals of an application for a property tax exemption under this section is at the sole discretion of the Board of County Commissioners and will be based on a determination that the approval, or partial approval, is in the best interest of Valley County. The Board retains full authority to structure the duration and terms of any exemption granted as deemed appropriate and in accordance with Idaho Code § 63-602NN. The Board may consider:
1. Whether the application demonstrates that the proposed project(s) will meet the minimum plant investment and building facilities investment requirements set forth in Idaho Code § 63-602NN.
2. Whether approval of an application will result in significant economic benefits to the county.
E. Additional Considerations of Application:
1. The criteria outlined in Valley County Code 1-9-1 et seq. are intended to give applicants guidance on the extent the Board is willing to grant full or partial tax exemption requests.
2. The Board may require additional information from an applicant in order to make a fully informed decision. If any information provided by the applicant includes a trade secret, as that term is defined by Idaho law, the Board may review the application materials in executive session.
3. If an application is approved, or partially approved, the applicant and Valley County shall enter into a contract as a condition of approval for the duration of the exemption period. The contract shall provide the terms and conditions upon which the exemption is granted and shall give Valley County the authority to terminate, modify, or impose additional requirements if the contract is breached or if a project ceases to qualify for the tax exemption.
4. No later than March 1 of each year, beginning the year an exemption is effective, and continuing each year thereafter until the exemption ends, each recipient of an exemption under this section shall submit a written report and certification of compliance to the Assessor’s Office. The report shall contain, at a minimum, the following:
a. The average number of full-time employees during the previous calendar year.
b. A schedule of employee positions, together with salaries paid, and employee benefit costs listed separately, including Employer Quarterly Unemployment Insurance Tax Report for the previous calendar year.
c. An itemized list of all new equipment and the cost and capitalization of each.
d. A compliance statement explaining whether recipient is in compliance with the terms and conditions of the exemption, and fully explaining any areas of non-compliance.
e. The Assessor may also solicit input from service providers during the annual reporting process to determine if there have been indirect impacts not considered during the original approval. If it is determined that there is a substantial change, it may be taken back to the Board of County Commissioners for additional review.
NOTICE: FAILURE TO TIMELY SUBMIT A COMPLETE ANNUAL REPORT IS GROUNDS FOR TERMINATION OF THE EXEMPTION.
F. Termination or Expiration:
UPON TERMINATION OR EXPIRATION OF THE EXEMPTION, THE PROPERTY SHALL BE VALUED FOR ASSESSMENT PURPOSES AT 100% OF CURRENT MARKET VALUE PURSUANT TO IDAHO CODE § 63-201. (Ord. 18-03, 6-25-2018; amd. Ord. 19-08, 9-30-2019; Ord. 21-07, 5-17-2021)