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HF 2417

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; modifying the property tax exemption for JOBZ to exclude
school operating referenda levies; limiting tax incentives for certain relocating
businesses; amending Minnesota Statutes 2006, sections 272.02, subdivision
64; 469.312, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:


Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds; or

(2) a levy under section 126C.17deleted text begin , if the levy was approved by the voters before the
designation of the job opportunity building zone
deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 469.312, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Restrictions on relocations. new text end

new text begin (a) If a business relocates or intends to
relocate under a proposed project more than 25 full-time equivalent jobs from a location
in Minnesota into a job opportunity building zone, the business must notify the local
government unit, the commissioner of employment and economic development, and the
city and the county governments from which the jobs are being or would be relocated.
A city or county that objects to the relocation of jobs must file a copy of the resolution
with the commissioner of employment and economic development and the local unit
of government.
new text end

new text begin (b) If the governing body of the city or county from which the jobs are being
relocated adopts a resolution objecting to the relocation within 60 days after its receipt of
the notice, the following rules apply until the requirements of paragraph (c) are satisfied:
new text end

new text begin (1) if the business has not entered into a business subsidy agreement, the local unit
of government may not enter into a business subsidy agreement with the business; or
new text end

new text begin (2) if the local unit of government has entered into a business subsidy agreement
with the business, the business ceases to be a qualified business, effective for the current
taxable year, the current assessment year, and for taxable purchases made after the first
day of the month beginning after the filing of the objecting resolution.
new text end

new text begin (c) When each city and county that objected to the relocation rescinds its objection
by resolution, the provisions of paragraph (b) no longer apply to the business.
new 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