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Sioux Falls advances changes to sales tax refund program, narrows incentives to manufacturing
Summary
City staff proposed tightening eligibility and procedures for the municipal sales tax refund program, tying thresholds to building-permit valuations, limiting qualifying uses to manufacturing, and increasing a final withholding to 15%; council set a second reading for Oct. 15, 2025.
Sioux Falls officials moved a proposed overhaul of the city's sales tax refund program to a second reading Wednesday, advancing changes staff said will better target incentives to capital-intensive manufacturers and clarify administration of refunds. Dustin Powers of Planning and Development Services presented the first-reading ordinance and described several key changes.
Powers said the amendments would tie eligibility to building-permit valuation rather than post-construction taxable value, setting a $10 million permit threshold for new facilities and $5 million for…
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