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County staff present 2023 tax-abatement report: $433.1 million in reported investment
Summary
County staff told the commission the 2023 tax-abatement program reported $433,147,745 in investment and combined tax savings of $2,563,896; staff reviewed 5- and 10-year programs and said new Class 8 equipment abatements will start appearing in future reports.
County staff presented the Yellowstone County 2023 tax-abatement annual report, summarizing recipients, program terms and the reported economic impact.
Diane (county staff) reviewed the county's longstanding five- and ten-year abatement programs and described the newer Class 8 equipment program created by recent state legislation. She said the 10-year and 5-year programs allow abatements tied to investments and job creation; the five-year program provides a 100% abatement for the construction period and full taxation beginning in year six. Diane told the board that reported county-only abatements in 2023 included Summit Resource International, CHS and Phillips 66, while city-jurisdiction abatements included Aspen Air, Billings Flying Service, Rimrock Subaru and MRB Properties.
According to Diane’s presentation, the combined tax savings for county-only abatements in 2023 were $2,563,896, and the total reported capital investment associated with abated projects was $433,147,745. Staff said the report also breaks out the term of each abatement, tax liability amounts, capital investments, tax savings, and the number of full- and part-time positions reported by each recipient. Diane noted the newest Class 8 equipment program will begin to appear in future annual reports because the program is recent and reporting lags one year.
Commissioners asked whether the five-year program percentages are discretionary; Diane clarified that counties have discretion on Class 8 abatements to set 80%, 90% or 100% and that the new program's entries will show up in next year’s report.
