Beaver Creek proposes housing tax abatement

A new housing tax abatement program may be available to Rock County and city of Beaver Creek residents this fall.
Beaver Creek Mayor Josh Teune asked county commissioners Aug. 6 if they would join in the council’s effort to boost housing in their city.
“We recently had a resident who went to Sioux Falls to build a house, and we are wondering if we had something out there if that would have made a difference for them to stay in Beaver Creek,” he said.
The tax abatement would apply to new construction only and be limited to five years.
By joining with the county, Teune hopes the incentive will boost interest in the new housing developments near the developing golf course in Beaver Creek.
“If I say we’re waiving 73 percent, it’s great but if you say you’re tax abating more than that, it would be a better idea,” he said.
Tax percentages vary between taxing districts.
In Beaver Creek the county’s portion of the property taxes is 10 percent.
Commissioners first discussed the development of a countywide tax abatement program for new housing in 2016.
“Most of us are in favor of trying to do something to encourage housing development,” said Commissioner Greg Burger. “I think this is about the best tool we can find to do that.”
The county currently offers a tax abatement program for business owners to move or expand within the county borders.
In the past five years, commissioners have approved three business abatements.
If adopted, the new housing tax abatement program would be offered to anyone interested in building a new house in Rock County.
A draft of the county’s new housing incentive program will be discussed for possible adoption at the Aug. 20 commissioners meeting.