An arrangement that could realize tax savings of more than $200,000 for a local employer will be discussed when the Barton County Commission meets Monday.
According to the agenda for Monday’s commission meeting, a public hearing “has been scheduled for the purpose of hearing public comments on a proposed tax abatement for Kan-Can Holdings, LLC, aka Redbarn Pet Products, Inc.”
The agenda notes that “Redbarn applied for a tax abatement through Barton County. The company believes it should receive the tax abatement as it has invested $216,900 in land and $889,390 in building improvements since establishing the business in Barton County in 2010, bringing with it 147 new employees. In addition, another $213,572 in expansion expenses is planned.”
County Financial Officer Janet Crane explained that the state provides for a property tax incentive that stretches over a 10-year period.
In the first year the successful candidate would get a 100 percent abatement on property taxes and that would diminish by 10 percent per year after that, until, in the final year, only 10 percent of property taxes would be abated.
According to the project cost/benefit analysis, Crane reported, over the 10 years of the abatement, an estimated $207,947 would be abated. The exact figure would, of course, depend on a number of financial issues and with the changing economy the exact amount could be different.
The abatement would impact, in addition to the county, USD 428, the Great Bend Recreation Commission, Barton County College, Southbend Township, Great Bend Public Library and the statewide USD mill levy collection.
The information about the issue has been published in the Tribune’s legal section and letters have been sent to each of the taxing entities, Crane explained.
Following the public hearing, the commissioners will consider a resolution that would, in approved, enact the abatement.
The commission meeting is set for 9 a.m. Monday in the courthouse.