SF 561

Introduction - 84th Legislature (2005 - 2006)

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

A bill for an act
relating to taxation; providing public accountability
for taxpayer subsidies of private business;
prohibiting new tax increment financing districts;
proposing coding for new law in Minnesota Statutes,
chapter 469; repealing Minnesota Statutes 2004,
sections 469.1812; 469.1813; 469.1814; 469.1815.

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

Section 1.

new text begin [469.1795] TERMINATION OF TAX INCREMENT
FINANCING AUTHORITY; BUSINESS SUBSIDIES RESTRICTED.
new text end

new text begin Subdivision 1. new text end

new text begin Additional activity prohibited. new text end

new text begin After May
31, 2005, notwithstanding any other law to the contrary, the
following actions are prohibited:
new text end

new text begin (1) certification of a new tax increment financing
district; and
new text end

new text begin (2) modification of an existing tax increment financing
plan to extend the duration of a district, expand the activities
to be financed within the district, or incur additional expenses
not included in the plan before May 31, 2005.
new text end

new text begin Subd. 2. new text end

new text begin Business subsidies. new text end

new text begin As used in this
subdivision, "business subsidy" means a grant; contribution of
property, infrastructure, or services; a loan at rates below
those commercially available to the recipient; a reduction or
deferral of a tax or fee; a guarantee of a payment under a loan,
lease, or other obligation; or a preferential use of government
facilities given to a business. A statutory or home rule
charter city or a county may not provide a business subsidy
except as authorized by law or except for activities that could
have been financed by tax increment under sections 469.174 to
469.1791, subject to the limitations in those provisions. If
the city or county proposes to provide a business subsidy, it
must conduct a public hearing on the issue after published
notice of the proposal and the hearing in a newspaper of general
circulation in the municipality.
new text end

new text begin Subd. 3. new text end [SUBSIDIES FROM OTHER JURISDICTIONS' LEVIES.] new text begin For
purposes of this subdivision, a home rule charter or statutory
city or a county that provides a business subsidy under
subdivision 2 is referred to as a "host municipality." A host
municipality may request that the county or city, or the school
district, or both, within the boundaries of which is located the
business that receives the subsidy, provide a share of the
subsidy. If the governing body of the political subdivision
that received the request, at a public hearing after published
notice, votes to provide a share of the subsidy, it shall
transmit to the host municipality a portion of the proceeds of
its levy, not to exceed the tax increment that would have been
attributable to that political subdivision's levy on the parcel
that contains the business that receives the subsidy. The money
must be used by the host municipality to provide the business
subsidy, subject to the limitations in sections 469.174 to
469.1791.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 469.1812; 469.1813;
469.1814; and 469.1815, are repealed. Tax abatements granted
under authority of those repealed sections prior to June 1,
2005, may continue according to the terms of those sections but
no new abatements may be granted on or after the effective date
of this section.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective June 1, 2005.
new text end