1.1                          A bill for an act 
  1.2             relating to taxation; increasing the duration limit 
  1.3             for tax abatement; amending Minnesota Statutes 2002, 
  1.4             section 469.1813, subdivision 6. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 469.1813, 
  1.7   subdivision 6, is amended to read: 
  1.8      Subd. 6.  [DURATION LIMIT.] (a) A political subdivision may 
  1.9   grant an abatement for a period no longer than ~~ten~~ 15 years, 
  1.10  except as provided under paragraph (b).  The subdivision may 
  1.11  specify in the abatement resolution a shorter duration.  If the 
  1.12  resolution does not specify a period of time, the abatement is 
  1.13  for eight years.  If an abatement has been granted to a parcel 
  1.14  of property and the period of the abatement has expired, the 
  1.15  political subdivision that granted the abatement may not grant 
  1.16  another abatement for eight years after the expiration of the 
  1.17  first abatement.  This prohibition does not apply to 
  1.18  improvements added after and not subject to the first abatement. 
  1.19     (b) A political subdivision proposing to abate taxes for a 
  1.20  parcel may request, in writing, that the other political 
  1.21  subdivisions in which the parcel is located grant an abatement 
  1.22  for the property.  If one of the other political subdivisions 
  1.23  declines, in writing, to grant an abatement or if 90 days pass 
  1.24  after receipt of the request to grant an abatement without a 
  1.25  written response from one of the political subdivisions, the 
  2.1   duration limit for an abatement for the parcel by the requesting 
  2.2   political subdivision and any other participating political 
  2.3   subdivision is increased to ~~15~~ 20 years.  If the political 
  2.4   subdivision which declined to grant an abatement later grants an 
  2.5   abatement for the parcel, the ~~15-year~~ 20-year duration limit is 
  2.6   reduced by one year for each year that the declining political 
  2.7   subdivision grants an abatement for the parcel during the period 
  2.8   of the abatement granted by the requesting political 
  2.9   subdivision.  The duration limit may not be reduced below the 
  2.10  limit under paragraph (a).  
  2.11     <b>[EFFECTIVE DATE.]</b> This section is effective for abatement 
  2.12  resolutions approved after the day following final enactment.