Sioux County Approves Tax Abatements with Data Centers Excluded

(Sioux County Courthouse in Orange City, Iowa - KIWA Staff Photo)

Orange City, Iowa (Sioux County Radio) — The Sioux County Board of Supervisors has approved a property tax abatement program for qualifying construction projects in unincorporated parts of the county, while specifically excluding data centers and several other types of projects.

The measure was approved unanimously Nov. 10th and will take effect Jan. 1st, 2027, according to Supervisor Craig Hoftyzer.

Who Can Qualify

The program applies to qualifying new construction projects or additions to existing commercial or industrial buildings located outside city limits.

Hoftyzer says eligible projects must involve at least $2 million in improvements and meet other program requirements. Projects beginning after the effective date will be eligible to apply.

The abatement will follow a five-year declining schedule, with 75% of the taxable value abated in the first year, followed by 60%, 45%, 30%, and 15% over the next four years.

Projects That Won’t Qualify

Several types of development were specifically excluded from the program.

Hoftyzer said questions about incentives for data centers have surfaced repeatedly during recent discussions about potential data center development in Sioux County.

Hoftyzer noted that county officials do not control what incentives the state may offer a data-center project.

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