The Sunflower County Board of Supervisors voted this week to end a temporary moratorium on granting tax abatements for economic development projects.
The unanimous vote came after Indianola Mayor Steve Rosenthal appeared before the body to clarify the city’s policies regarding tax abatements.
The moratorium was passed during the board’s last meeting after a lengthy discussion surrounding a tax abatement the city granted for a project by developer Sam Rosenthal that is now underway on U.S. 82.
By law, the county cannot grant abatements to city projects unless the city first approves an incentives package.
The city had granted Sam Rosenthal’s request for incentives, but it had previously rejected a request from Platinum Plus Care, a business that underwent an extensive renovation and addition.
The mayor told the board on Monday that request was denied because the project had already been completed, and by law, the city cannot grant a tax abatement unless the project was not yet under construction at the time of the written request.
“The state auditor clearly stated 10 months after completion was too late to come and apply for it,” Rosenthal told the board. “When they got the tax bill, that’s when they thought about it.”
Rosenthal went on to explain that tax abatements for renovations and additions to existing properties only apply to the newly assessed value of the property.
“That way we’re not giving away something we already have,” he said. “We’re trying to create something we didn’t already have.”
Rosenthal asked the board to reconsider its moratorium so that it would not hinder the recruitment of business and investment to Indianola.
“I would hate to lose that tool,” Rosenthal said. “The strength of our offer is the city and county would join in. Whatever benefits Indianola would benefit the county as well and vice versa.”
District 2 Supervisor Riley Rice said that he had questions at the last board meeting about the city’s policy, but he did not intend for them to be misconstrued as wanting to deny anyone else’s requests for incentives.
“I kept emphasizing we weren’t trying to deny anyone,” Rice said. “We just wanted some questions answered.”
District 5 Supervisor Gloria Dickerson, who was the lone vote against Sam Rosenthal’s request for a tax abatement earlier this month, said she wanted to make sure the process city used was being done fairly.
“We want our message to be that we are fair,” Dickerson said.
Board President Glenn Donald agreed the moratorium could hurt the county’s reputation in economic development circles.
“I wish someone would rescind that motion so that we can take it out of the record that we even did it,” Donald said.
Board Attorney Johnny McWilliams advised the board to vote to end it.
Dickerson made the motion to lift the moratorium, which was followed by the vote.
