HF 2975

as introduced - 88th Legislature (2013 - 2014) Posted on 03/12/2014 11:30am

A bill for an act
relating to taxation; modifying the incentives available in and the funding for
border city enterprise and development zones; amending Minnesota Statutes
2012, section 469.171, subdivision 6; Minnesota Statutes 2013 Supplement,
section 469.169, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2013 Supplement, section 469.169, is amended by
adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Permanent zone allocation. new text end

new text begin Each calendar year $5,000,000 is allocated
for tax reductions in border city enterprise zones and border city development zones. The
commissioner shall allocate this amount among the cities on a per capita basis. Allocations
may be used for tax reductions for that year under either the border city:
new text end

new text begin (1) enterprise zone program under section 469.171, or for other offsets of taxes
imposed on or remitted by businesses located in the enterprise zone, if the municipality
determines that the granting of the tax reduction or offset is necessary to retain a business
within or attract a business to the zone; or
new text end

new text begin (2) development zone program under section 469.1732 or 469.1734.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014, but only $2,500,000 is
available in calendar year 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 469.171, subdivision 6, is amended to read:

Subd. 6.

Additional border city tax reductions.

In addition to the tax reductions
authorized by subdivision 1, for a border city zone, the following types of tax reductions
may be approved:

(1) a credit against income tax for workers employed in the zone and not qualifying
for a credit under subdivision 1, clause (2), subject to a maximum of deleted text begin $1,500 deleted text end new text begin $3,000 new text end per
employee per year;

(2) a state paid property tax credit for a portion of the property taxes paid by a
commercial or industrial facility located in the zone.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end