HF 587

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to the city of Columbia Heights; authorizing 
  1.3             the city to establish an enterprise zone; providing 
  1.4             tax incentives for high technology businesses that 
  1.5             locate in the zone. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [ENTERPRISE ZONE.] 
  1.8      Subdivision 1.  [AUTHORITY TO DESIGNATE.] The governing 
  1.9   body of the city of Columbia Heights may designate an enterprise 
  1.10  zone, consisting of the undeveloped parcels of property located 
  1.11  at the northwest, southwest, and northeast corners of the 
  1.12  intersection of Central Street and Forty-Second Avenue Northeast.
  1.13     Subd. 2.  [DURATION.] The resolution designating the zone 
  1.14  must specify the duration of the zone, but the duration may not 
  1.15  exceed ten years.  The tax incentives under subdivisions 4 and 5 
  1.16  are available for the duration of the zone. 
  1.17     Subd. 3.  [HIGH TECH BUSINESSES.] The tax incentives under 
  1.18  subdivisions 4 and 5 are available only to high technology 
  1.19  businesses.  High technology businesses include those engaged in 
  1.20  designing, developing, or producing computers, telecommunication 
  1.21  equipment, or other electronic or electrical equipment or 
  1.22  related devices, software, medical devices and equipment, 
  1.23  medicine and drugs, biotechnology, information services, 
  1.24  environmental technology, agricultural processing, and other 
  1.25  similar lines of business. 
  2.1      Subd. 4.  [SALES TAX EXEMPTION.] (a) The gross receipts 
  2.2   from the sale of machinery and equipment and repair parts are 
  2.3   exempt from taxation under Minnesota Statutes, chapter 297A, if 
  2.4   the equipment: 
  2.5      (1) is used by a high technology business in an enterprise 
  2.6   zone designated under this section; and 
  2.7      (2) has a useful life of 12 months or more. 
  2.8      (b) The gross receipts from the sale of construction 
  2.9   materials are exempt, if they are used to construct a facility 
  2.10  to be used primarily by a high technology business in an 
  2.11  enterprise zone designated under this section. 
  2.12     (c) The exemptions under this subdivision apply regardless 
  2.13  of whether the purchase is made by the owner, the user, or a 
  2.14  contractor. 
  2.15     Subd. 5.  [PROPERTY TAX REDUCTION.] Commercial and 
  2.16  industrial property located in the zone and used primarily by a 
  2.17  high technology business has a class rate for purposes of ad 
  2.18  valorem property taxation of two percent. 
  2.19     Subd. 6.  [EFFECTIVE DATE.] This section is effective the 
  2.20  day after the approval of this act by the city of Columbia 
  2.21  Heights is filed according to Minnesota Statutes, section 
  2.22  645.021, subdivision 3.