HF 222

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/11/2023 04:02pm

A bill for an act
relating to taxation; property; exempting a portion of commercial-industrial property
market value from city levy; proposing coding for new law in Minnesota Statutes,
chapter 469.

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

Section 1.

new text begin [469.1817] BUSINESS RETENTION; PROPERTY VALUE REDUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Business retention zone designation. new text end

new text begin The governing body of a home
rule or statutory city may by resolution designate up to 30 percent of qualifying properties
in its commercial and industrial areas as a business retention zone. The city may reduce the
estimated market value of qualified businesses within a zone by up to ... percent.
new text end

new text begin Subd. 2. new text end

new text begin City may reduce value. new text end

new text begin The governing body of a city may by resolution
designate qualifying property as belonging to the business retention zone and reduce the
value of each property up to ... percent. This reduction in value may not include the value
of any improvements existing at the time the reduction is granted or during the reduction
period.
new text end

new text begin Subd. 3. new text end

new text begin Qualifying property. new text end

new text begin To qualify for the business retention zone designation
and a value reduction under this section, the taxable property must meet all the following
conditions:
new text end

new text begin (1) be property of a business existing in the city for more than ... years;
new text end

new text begin (2) be classified as 1c; and
new text end

new text begin (3) have an increase in local property taxes of ... percent or greater between two
consecutive calendar years beginning in taxes payable year 2018 or later.
new text end

new text begin Subd. 4. new text end

new text begin Application; hearing. new text end

new text begin (a) By April 30 of the assessment year for which the
business retention zone designation and valuation reduction is first requested, an applicant
may apply to the city clerk where the property is located. The application must contain the
legal description of the property and the information required in subdivision 3 for determining
eligibility.
new text end

new text begin (b) Before approving a business retention zone designation and value reduction pursuant
to this section, the governing body of a city must hold a public hearing. The city clerk must
publish a notice in the official newspaper of the time and place of a hearing to be held by
the governing body on the application, not less than 30 days after the notice is published.
The notice must state that the applicant, local government officials, and any taxpayer of the
city may be heard or may present their views in writing at or before the hearing. The
governing body must act on the application by resolution within 30 days after the hearing
ends. If the application is disapproved, the reasons must be set forth in the resolution. If the
application is approved, the city clerk must forward a copy of the resolution approving the
designation and the determined value reduction to the county assessor who must reduce the
value of the property under the terms of and for the period contained in the resolution.
new text end

new text begin Subd. 5. new text end

new text begin Duration limitation. new text end

new text begin The governing body of the city may grant concurrent
valuation reductions for a period no longer than 15 years. This period commences in the
first year in which the property is designated as a business retention zone and a reduction
is granted. The city may specify by resolution a shorter duration.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end