HF 1453

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to agriculture; authorizing family
agricultural revitalization zones (FARMZ); promoting
value-added processing agricultural products; amending
Minnesota Statutes 2004, section 469.310, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 469.

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

Section 1.

Minnesota Statutes 2004, section 469.310, is
amended by adding a subdivision to read:

new text begin Subd. 11a. new text end

new text begin Qualified farm. new text end

new text begin "Qualified farm" means a
person actively engaged in farming, that invests in an
agricultural processing facility on the farm, and that:
new text end

new text begin (1) increases employment on the farm by a minimum of 25
percent of full-time employment in the first full year of
operation. The employment may include family members;
new text end

new text begin (2) makes an investment equal to at least ten percent of
the previous years' gross revenue in the agricultural processing
facility; and
new text end

new text begin (3) enters into a binding written agreement with the
commissioner that:
new text end

new text begin (i) pledges the agricultural processing facility will meet
the requirements of clauses (1) and (2); and
new text end

new text begin (ii) provides the repayment of all tax benefits enumerated
under section 469.315 to the business under the procedures in
section 469.319, if the requirements of clauses (1) and (2) are
not met for the taxable year or for taxes payable during the
year in which the requirements are not met; and
new text end

new text begin (iii) contains any other terms the commissioner deems
appropriate.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [469.3141] FAMILY AGRICULTURAL REVITALIZATION
ZONES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to designate. new text end

new text begin In addition to
the designations authorized under section 469.314, the
commissioner, in consultation with the commissioner of revenue,
may designate one or more family agricultural revitalization
zones for on-farm agricultural processing facility projects. In
designating a zone, the commissioner shall consider the need for
tax incentives to make the project feasible and the likelihood
of success of the project. The commissioner may designate a
zone at any time upon application for a qualifying project.
new text end

new text begin Subd. 2. new text end

new text begin Qualifying projects. new text end

new text begin A qualifying project is
limited to the portion of a qualified farm that consists of the
agricultural processing facility. The tax incentives under
section 469.315 do not extend to the rest of the farm.
new text end

new text begin Subd. 3. new text end

new text begin Application of jobz rules. new text end

new text begin Except as otherwise
specifically provided in this section, sections 469.310 to
469.320 apply to family agricultural revitalization zones
designated under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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