SF 65

Introduction - 82nd Legislature (2001 - 2002)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to taxation; providing public accountability 
  1.3             for taxpayer subsidies of private business; 
  1.4             prohibiting new tax increment financing districts; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 469; repealing Minnesota Statutes 2000, 
  1.7             sections 469.1812; 469.1813; 469.1814; and 469.1815. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [469.1792] [TERMINATION OF TAX INCREMENT 
  1.10  FINANCING AUTHORITY; BUSINESS SUBSIDIES RESTRICTED.] 
  1.11     Subdivision 1.  [ADDITIONAL ACTIVITY PROHIBITED.] After May 
  1.12  31, 2001, notwithstanding any other law to the contrary, the 
  1.13  following actions are prohibited: 
  1.14     (1) certification of a new tax increment financing 
  1.15  district; and 
  1.16     (2) modification of an existing tax increment financing 
  1.17  plan to extend the duration of a district, expand the activities 
  1.18  to be financed within the district, or incur additional expenses 
  1.19  not included in the plan before May 31, 2001. 
  1.20     Subd. 2.  [BUSINESS SUBSIDIES.] As used in this 
  1.21  subdivision, "business subsidy" means a grant, contribution of 
  1.22  property, infrastructure, or services, a loan at rates below 
  1.23  those commercially available to the recipient, a reduction or 
  1.24  deferral of a tax or fee, a guarantee of a payment under a loan, 
  1.25  lease, or other obligation, or a preferential use of government 
  1.26  facilities given to a business.  A statutory or home rule 
  2.1   charter city or a county may not provide a business subsidy 
  2.2   except as authorized by law or except for activities that could 
  2.3   have been financed by tax increment under sections 469.174 to 
  2.4   469.1791, subject to the limitations in those provisions.  If 
  2.5   the city or county proposes to provide a business subsidy, it 
  2.6   must conduct a public hearing on the issue after published 
  2.7   notice of the proposal and the hearing in a newspaper of general 
  2.8   circulation in the municipality. 
  2.9      Subd. 3.  [SUBSIDIES FROM OTHER JURISDICTIONS' LEVIES.] For 
  2.10  purposes of this subdivision, a home rule charter or statutory 
  2.11  city or a county that provides a business subsidy under 
  2.12  subdivision 2 is referred to as a "host municipality."  A host 
  2.13  municipality may request that the county or city, or the school 
  2.14  district, or both, within the boundaries of which is located the 
  2.15  business that receives the subsidy, provide a share of the 
  2.16  subsidy.  If the governing body of the political subdivision 
  2.17  that received the request, at a public hearing held after 
  2.18  published notice, votes to provide a share of the subsidy, it 
  2.19  shall transmit to the host municipality a portion of the 
  2.20  proceeds of its levy, not to exceed the tax increment that would 
  2.21  have been attributable to that political subdivision's levy on 
  2.22  the parcel that contains the business that receives the 
  2.23  subsidy.  The money must be used by the host municipality to 
  2.24  provide the business subsidy, subject to the limitations in 
  2.25  sections 469.174 to 469.1791. 
  2.26     Sec. 2.  [REPEALER.] 
  2.27     Minnesota Statutes 2000, sections 469.1812; 469.1813; 
  2.28  469.1814; and 469.1815, are repealed.  Tax abatements granted 
  2.29  under authority of those repealed sections may continue 
  2.30  according to the terms of those sections but no new abatements 
  2.31  may be granted on or after the effective date of this section. 
  2.32     Sec. 3.  [EFFECTIVE DATE.] 
  2.33     Section 1 is effective June 1, 2001.