The Sioux County Board of Supervisors has approved a property tax abatement program for qualifying construction projects in unincorporated parts of the county, with data centers and several other types of development excluded.
Supervisor Craig Hoftyzer says the board unanimously approved the measure Tuesday, November 10th. It takes effect January 1st, 2027.
Who Can Qualify
Hoftyzer says the program applies to qualifying new construction or additions to existing buildings outside city limits. Projects must be at least $2 million and meet the program’s other eligibility requirements.
He says projects beginning after the program takes effect can apply for the abatement.
Hoftyzer described a five-year abatement schedule starting at 75% in the first year, followed by 60%, 45%, 30%, and 15% over the remaining four years.
Projects That Are Excluded
Several types of development will not qualify for the abatement.
“It excludes data centers, it excludes methane digester plants or facilities, it excludes solar and wind generation, and residential.”
Hoftyzer says residents have raised questions during recent data-center discussions about whether a proposed facility would receive tax abatements or other incentives.
“From the beginning, I was always like, we’re willing to look at this (data centers coming to Sioux County) but we are not looking to incentivize them to come,” Hoftyzer continued. “So if they want to come here, okay. But from the county perspective, we are not giving them a tax break. Now, I don’t have any authority over what the state allows or doesn’t allow them but from a county perspective, I had no appetite for that.”
Hoftyzer noted that county officials do not control what incentives the state may offer a data-center project.
