Business tax program ends soon
Courtesy photo<br> To decrease the cost of building or expanding, Grant County manufacturs can quality for a sales and use tax deferral.
GRANT COUNTY — The Grant County Economic Development Council (EDC) encourages manufacturing businesses building or expanding in Grant County to save money by applying for a sales and use tax deferral.
The state Department of Revenue program ends in Grant County on June 30 because the program is changing to include only distressed counties, not rural counties.
According to the state definition, a distressed county has a three-year average unemployment rate equal to or greater than 120 percent of the statewide unemployment rate.
Grant County used to be considered a distressed county because of its unemployment rate.
In 2010, Grant County’s three-year average unemployment rate improved, decreasing to 7.1 percent. The distressed county threshold was 7.6 percent.
“On the one hand, it is very gratifying to see our area doing so well and weathering the economic storm better than most places,” stated Terry Brewer, the EDC’s executive director. “We haven’t seen unemployment rise here as much as it has in other parts of the state or county.
“On the other hand, it is disappointing to see that, because of our strong diverse economy, we are now faced with an increase in the cost of doing business here,” he commented.
Businesses must complete a three-page application with the state Department of Revenue for the deferral.
“We’re trying to encourage everyone who has a project to apply now before the program turns to distressed counties,” said Jon Smith, the EDC’s managing director.
Businesses must apply before they break ground on the project and cannot utilize the program if they’ve already started work, he said.
A project can still quality if construction extends past June 30.
Nearly all Grant County manufacturers can qualify, including food processors, industrial equipment manufacturers and chemical manufacturers.
In the case of the construction of a new business, the tax deferral program can waive a significant portion of the cost of the facility, Smith comments.
For example, a business building a $10 million facility saves 7.9 percent of the cost.
“Pretty much every manufacturer in the area that’s involved us in their project has used the program,” Smith commented. “When we start working with any of these businesses, we make them aware up front of the program, so their project is as cost-effective for them as possible.”
For more information, call 509-764-6579.