HF 1104

as introduced - 91st Legislature (2019 - 2020) Posted on 02/14/2019 03:20pm

A bill for an act
relating to taxation; economic development; providing permanent tax reduction
authority to border city enterprise zones; amending Minnesota Statutes 2018,
sections 469.169, by adding a subdivision; 469.171, subdivision 4.

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

Section 1.

Minnesota Statutes 2018, section 469.169, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Additional border city allocations. new text end

new text begin (a) In addition to the tax reductions
authorized in subdivisions 12 to 20, the commissioner shall annually allocate $1,000,000
for tax reductions to border city enterprise zones in cities located on the western border of
the state. The commissioner shall allocate this amount among cities on a per capita basis.
Allocations made under this subdivision may be used for tax reductions under sections
469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted by
businesses located in the enterprise zone as provided by law, but only 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.
new text end

new text begin (b) The allocations under this subdivision do not cancel or expire, but remain available
until used by the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 469.171, subdivision 4, is amended to read:

Subd. 4.

Restriction.

The tax reductions provided by this section shall not apply to (1)
a facility the primary purpose of which is one of the following: deleted text begin retail food and beverage
services, automobile sales or service, or deleted text end the provision of recreation or entertainment, or a
private or commercial golf course, country club, massage parlor, tennis club, skating facility
including roller skating, skateboard, and ice skating, racquet sports facility, including any
handball or racquetball court, hot tub facility, suntan facility, or racetrack; (2) property of
a public utility; (3) property used in the operation of a financial institution; (4) property
owned by a fraternal or veterans' organization; or (5) deleted text begin property of a business operating under
a franchise agreement that requires the business to be located in the state; except that tax
reductions may be provided to a retail food or beverage facility or an automobile sales or
service facility, or a business deleted text end new text begin a retail food or beverage facility new text end operating under a franchise
agreement that requires the business to be located in this state deleted text begin except for such a franchised
retail food or beverage facility deleted text end .

new text begin EFFECTIVE DATE. new text end

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