Commission debates five-year step-down tax-incentive draft and whether to include pilots or apartments

Staff presented a draft revision of the county’s new-and-expanding business tax-incentive policy that would replace a first-year 100% exemption with a five-year step-down schedule (80%, 60%, 40%, 20%, 10%) for primary-sector certified applicants. The draft emphasized that only primary-sector certified businesses would qualify for the proposed exemption policy.

Commissioners used the discussion to air competing priorities: several members warned that long exemptions or 25-year PILOT agreements could erode the county’s new-growth tax base; others argued for a flexible tool to attract major employers. Some commissioners voiced strong opposition to including residential apartments or extending pilot/TIF incentives beyond five years, citing competitive disadvantages for existing apartment owners.

Staff clarified that the draft policy is narrowly intended for five-year exemptions for new and expanding primary-sector businesses and that PILOT agreements or TIFs should be addressed in separate stand-alone policies. County counsel explained a legal distinction in the North Dakota Century Code: exemptions (which may require primary-sector certification) and PILOTs are treated under different subsections, and counties below certain population thresholds may have broader eligibility in some cases (for example, allowing retail in limited circumstances).

The commission provided direction to staff to refine language, consider exclusions or clearer point-based criteria, and return the draft for further consideration at a future meeting. There was no final vote to adopt the draft policy at this meeting.