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Commissioners hear state CAFO tax requirements


Walworth County Commissioners heard two officials connected with Gov. Noem’s Office of Economic Development explain a program connected to the proposed confined animal feedlot operation (CAFO) near Bowdle in Walworth County.
Scott Amundson explained that Gov. Noem and the Legislature have moved forward with creating a program that helps livestock development as a targeted industry in South Dakota.
The 2013 legislation created a sales and use tax rebate as an incentive to establish a business in the state. It was created for manufacturing but is now available to livestock development.
He explained 100 percent of the sales and use tax will go back to the county in which the CAFO is established as an incentive to grow the livestock industry. Two conditions are required to receive the rebate, conditional use permit and increase livestock head in South Dakota.
Walworth County has the ordinances that require a conditional use permit for this type of operation and zoning regulations for establishing the industry in the county, meeting the requirements of the program.
The incentive to help in the development of the livestock industry is that at the end of the project, all sales and use tax on the materials used on the project will go back to the county, no strings attached. The county can use the money as it sees fit.
Kyle Peters, business development representative at the South Dakota Office of Economic Development, told the commissioners that the application is before the board of economic development. He told the board they needed to approve the application for the project before the process can move forward. The materials and equipment used in the project are subject to the sales and use tax.
The board approved advertising for the conditional use permit and will hold a hearing on the project at the Monday, Dec. 30, yearend hearing.

Budget discussion
Walworth County Auditor Rebecca Krein read a letter from the Department of Revenue and information from the Office of Legislative Audit concerning the legality of the 2020 budget that was approved by the required deadline of the state.
Officials from those agencies agreed that since there was no precedence on the situation that came up, that the resolution was not read out loud and all of the commissioners did not sign the approved budget. It was stated that the commission should request assistance on the matter from Walworth County State’s Attorney Jamie Hare.
Commissioner Jim Houck made a motion to leave it as is and suggested the commission move on from the long disputed issue.
All commissioners approved the motion and the budget discussion concluded.

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