County takes up tax break for company

The Daily Inter Lake

The Flathead County commissioners could take action this morning on a tax incentive request from Plum Creek Timber Co.

The request comes as part of the county's new and expanding business program, which is intended to promote economic development by reducing the taxes that manufacturing firms pay on new investments.

Plum Creek is seeking the tax break for a 600,000-gallon, concrete catch basin that recycles wastewater and eliminates groundwater discharges from the company's medium-density fiberboard plant in Columbia Falls.

The total project cost was estimated to be $1.4 million.

If the tax break is approved, the taxable value of this investment would be reduced by half for five years; the value would then increase gradually, until the full taxable value is reached in 10 years.

In the past, the commissioners have typically approved such requests without questioning how much tax revenue is involved.

Based on figures from the Montana Department of Revenue, it's estimated that tax breaks for Plum Creek and other applicants cost the county about $110,000 in property taxes per year. Local school districts probably give up more than that.

The commissioners tabled action on this latest request in April, saying they wanted more information about the program.

Last week, they denied a related request from Plum Creek regarding a $1.5 million warehouse addition, saying the project didn't meet the program criteria.

The commissioners are scheduled to resume their discussion of the catch-basin request at 8:45 a.m.

It isn't clear whether public comment will be accepted at that time; however, a general public comment period is scheduled immediately prior to this agenda item.