The Sioux County Board of Supervisors has formally rescinded the county’s 1980 industrial property-tax exemption policy (Resolution 1980-10) and authorized county staff to begin drafting a replacement ordinance.
Under the board’s decision, six local properties currently operating under the 1980 tax exemption policy will be grandfathered in, allowing them to complete their designated five-year tax exemption periods. However, the county will no longer accept any new applications under the old policy.
County officials outlined the transition during the supervisors’ meeting, emphasizing the need to sunset the outdated 1980 resolution while establishing a clear process for a updated policy.
“Rescinds the nineteen eighty Dash ten, um, resolution that approved a partial tax exemption for various properties in the county. We’ve got currently six properties I think, operating under that. And they’ll stay on until their five year time frame is satisfied. But this then prevents any others from applying under that resolution.”
Proposed Ordinance Requirements and Exclusions
The board authorized officials to initiate the formal process for establishing a replacement tax abatement ordinance, which could potentially take effect in January 2027.
As proposed, the draft framework requires projects to meet a minimum threshold of $2 million in added assessed value. The exemption would apply exclusively to qualifying properties classified as commercial or industrial.
Crucially, the proposed replacement policy carves out strict exclusions for specific industries. Developments involving data centers, anaerobic digesters, solar energy projects, and wind projects will be completely ineligible for tax abatements under the new ordinance.
“And then if you’ll note on, uh. We, uh, are excluding, as we talked about before, um, the digesters, the data centers, solar and wind energy. So none of those will qualify for the tax abatement under this plan.”
The exclusion of data centers represents the strongest local angle in the proposed policy, directly aligning with Sioux County’s current moratorium on data center developments.
High Scrutiny for Future Applicants
County officials stressed that meeting the $2 million added assessed value mark will be based on assessed market value rather than total construction spending. Furthermore, meeting the financial threshold alone will not guarantee approval. Applicants must prove their project will deliver significant economic impact, subject to supervisor review and approval by formal resolution.
“And according to this, you know, once it’s approved then you approve the application and you have to approve those applications by resolution. So that means you’re going to have to carefully consider what is being presented to you. They have to fill out the application and satisfy you. They have to meet the two million dollar threshold. First and foremost. But then you have to be satisfied that they’re that they’re actually going to contribute to the economy.”
Next Steps
Before the supervisors take a final vote to adopt the replacement tax abatement policy, county staff must complete the formal draft ordinance. The forthcoming draft will formally establish the proposed tax abatement percentages, the duration of the abatement period, and the exact legal eligibility language. Once drafted, the county will publish its intent and hold required public hearings prior to final adoption.
