HF 483

as introduced - 87th Legislature (2011 - 2012) Posted on 02/14/2011 10:45am

A bill for an act
relating to taxation; job opportunity building zones; modifying waiver authority;
amending Minnesota Statutes 2010, section 469.319, subdivision 5.

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

Section 1.

Minnesota Statutes 2010, section 469.319, subdivision 5, is amended to read:

Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a
repayment required under subdivision 1, if the commissioner, in consultation with
the commissioner of employment and economic development and appropriate officials
from the local government units in which the qualified business is located, determines
that requiring repayment of the tax is not in the best interest of the state or the local
government units and the business new text begin either:
new text end

new text begin (1) new text end ceased operating as a result of circumstances beyond its control including, but
not limited to:

deleted text begin (1) deleted text end new text begin (i) new text end a natural disaster;

deleted text begin (2) deleted text end new text begin (ii) new text end unforeseen industry trends; or

deleted text begin (3) deleted text end new text begin (iii) new text end loss of a major supplier or customer deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) did not meet the goals described in the business subsidy agreement as a result
of unforeseen economic or business conditions, including but not limited to those listed
in clause (1), items (ii) and (iii), as long as the business:
new text end

new text begin (i) continues to maintain the same level of operations in the zone that it operated
while receiving tax benefits listed in section 469.315; and
new text end

new text begin (ii) meets the employment requirements under section 469.310, subdivision 11,
paragraph (d), clause (1), within one year from the date of ineligibility and maintains the
employment requirements for three additional consecutive years.
new text end

(b)(1) The commissioner shall waive repayment required under subdivision 1a if
the commissioner has waived repayment by the operating business under subdivision 1,
unless the person that received benefits without having to operate a business in the zone
was a contributing factor in the qualified business becoming subject to repayment under
subdivision 1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even
if the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone
and the business that operated in the zone are not related parties as defined in section
267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business
becoming subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the notice date
of an order issued under subdivision 4, paragraph (d), or, in the case of property taxes,
within 60 days of the date of a tax statement issued under subdivision 4, paragraph (c). new text begin
Requests for waiver under paragraph (a), clause (2), must be made within 60 days of the
effective date of this act.
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