Bannock County authorizes legal staff to draft plant-investment tax-exemption ordinance
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Summary
County legal counsel told commissioners the county lacks a local ordinance implementing Idaho Code authority for plant-investment tax exemptions and asked to begin drafting a tiered ordinance with a minimum threshold; the board authorized drafting and public meeting steps.
Bannock County commissioners on Jan. 20 authorized county legal staff to draft an ordinance to allow tax exemptions on "plant" investments — infrastructure or buildings used to enable manufacturing or technology operations — under state authority referenced during the meeting.
Jonathan Ratner, Bannock County legal counsel, told the board he reviewed county codes and found no current ordinance implementing the statute cited in the meeting. Ratner said the statute gives the board discretion to grant exemptions on plant investments but requires the county to adopt an ordinance setting a minimum investment threshold and other parameters. "The code requires there to be an active ordinance, and it also requires a minimum plant investment that has to be set at at least $500,000," Ratner said, noting the county would determine its own threshold and other contract terms.
Commissioners discussed models from other Idaho counties and favored a tiered approach that would weigh job creation, wages and job retention. One commissioner noted that Canyon County’s tiering and Twin Falls’ scoring matrix provided examples of how to balance predictability for businesses with board discretion. Ratner said the county could write enforceable performance benchmarks into contracts and remove exemptions if a company failed to meet its commitments.
Ratner also explained the exemption applies to the value of qualifying infrastructure or equipment — not the land or overall purchase price — and that exemptions typically run for up to five tax years per qualifying investment unless the contract specifies otherwise. "The applying corporation would make a proposal to the board of county commissioners. We could set benchmarks that can all be dealt with, and that can be dealt with on a case by case basis," he said.
The board authorized Ratner to draft an ordinance and begin the public-meeting process, with direction to return with proposed thresholds and a draft scoring/benchmark approach for the board to review.
Next steps: legal staff will prepare a draft ordinance, circulate it in a public packet and schedule required public hearings before the board considers adoption.
