HF 832

as introduced - 87th Legislature (2011 - 2012) Posted on 03/03/2011 11:16am

A bill for an act
relating to taxation; tax increment financing; prohibiting the inclusion of a district
or the use of increment to assist certain gaming facilities, as defined under federal
law; amending Minnesota Statutes 2010, section 469.176, subdivisions 4l, 7.

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

Section 1.

Minnesota Statutes 2010, section 469.176, subdivision 4l, is amended to
read:

Subd. 4l.

Prohibited facilities.

(a) No tax increment from any district may be
used for:

(1) a commons area used as a public park; deleted text begin or
deleted text end

(2) a facility used for social, recreational, or conference purposes deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) a property that includes a casino or other facility conducting class III gaming as
defined in United States Code, title 25, section 2703, regardless of whether it is conducted
by an Indian tribe or tribal business.
new text end

(b) deleted text begin This subdivision deleted text end new text begin Paragraph (a), clause (2), new text end does not apply to a privately owned
facility for conference purposes or a parking structure, whether it is public or privately
owned or whether it is ancillary to a use listed in paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for expenditures of increment made
after June 30, 2011, regardless of when the request for certification of the district was made.
new text end

Sec. 2.

Minnesota Statutes 2010, section 469.176, subdivision 7, is amended to read:

Subd. 7.

Parcels not includable in districts.

(a) The authority may request
inclusion in a tax increment financing district and the county auditor may certify the
original tax capacity of a parcel or a part of a parcel that qualified under the provisions of
section 273.111 or 273.112 or chapter 473H for taxes payable in any of the five calendar
years before the filing of the request for certification only for:

(1) a district in which 85 percent or more of the planned buildings and facilities
(determined on the basis of square footage) are a qualified manufacturing facility or a
qualified distribution facility or a combination of both; or

(2) a housing district.

(b)(1) A distribution facility means buildings and other improvements to real
property that are used to conduct activities in at least each of the following categories:

(i) to store or warehouse tangible personal property;

(ii) to take orders for shipment, mailing, or delivery;

(iii) to prepare personal property for shipment, mailing, or delivery; and

(iv) to ship, mail, or deliver property.

(2) A manufacturing facility includes space used for manufacturing or producing
tangible personal property, including processing resulting in the change in condition of the
property, and space necessary for and related to the manufacturing activities.

(3) To be a qualified facility, the owner or operator of a manufacturing or distribution
facility must agree to pay and pay 90 percent or more of the employees of the facility at
a rate equal to or greater than 160 percent of the federal minimum wage for individuals
over the age of 20.

new text begin (c) The authority may not request inclusion in a tax increment financing district and
the county auditor may not certify the original tax capacity of a parcel or a part of a parcel
that contains or is expected to contain uses, facilities, properties, or businesses conducting
class III gaming, as defined in United States Code, title 25, section 2703, regardless of
whether it is conducted by an Indian tribe or tribal business.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for parcels for which the request for
certification is made following the day following final enactment.
new text end