Steffes gets 5 years of tax exemptionsA Dickinson manufacturing company’s expansion has helped it qualify for a five-year income tax exemption of almost $101,000 per year, officials said.
A Dickinson manufacturing company’s expansion has helped it qualify for a five-year income tax exemption of almost $101,000 per year, officials said.
The North Dakota Board of Tax Equalization unanimously approved an application for Steffes Corp. on Thursday at the North Dakota State Capitol, in which the company requested a full income tax exemption for its investment of $2 million to expand production and staff.
Steffes President Joe Rothschiller said the company has expanded to build components for Bobcat Co. in West Fargo, adding the expansion will diversify its production beyond oil-related equipment.
“This opportunity that came to us through Bobcat created 25-plus jobs and an estimated payroll of $1.3 million (per year),” he said. “It’s exciting to see the market grow, and it’s exciting to see Dickinson grow with a company from the eastern side of the state.”
Steffes purchased a $400,000 paint booth as part of the expansion. Other investments include welders, fixtures, cranes and a conversion of the warehouse to manufacturing space.
Agriculture Commissioner Doug Goehring, who serves on the board, said there were no problems with the application and he was excited to see what Steffes could do for western North Dakota.
“We get a lot of applications for tax exemptions,” he said. “Every time they step up to the plate, they always hit the bases or home runs.”
Steffes employs more than 200 people and brought in $8 million in revenue last year. According to the application, the company projects to pull in annual revenues between $5.6 million and $6.5 million in the next five tax years.
Deputy Tax Commissioner Ryan Rauschenberger said while Steffes is involved in the North Dakota oil industry, the business venture shows it can and will go beyond energy manufacturing.
“With so much of the growth in western North Dakota focused around oil, this provides a lot of diversification for the Dickinson area,” he said. “This just goes to show that Dickinson is a good place to do business for a number of different kinds of business sectors.”
Rothschiller said it will also create “good-paying jobs.”