HF 1000

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; property; permitting a political 
  1.3             subdivision to forgive interest and penalties on 
  1.4             deferred property tax payments in certain instances; 
  1.5             amending Minnesota Statutes 1998, section 469.1813, 
  1.6             subdivisions 1, 2, and by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 469.1813, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [AUTHORITY.] The governing body of a 
  1.11  political subdivision may grant an abatement of the taxes 
  1.12  imposed by the political subdivision on a parcel of property, or 
  1.13  defer the payments of the taxes and abate the interest and 
  1.14  penalty that would otherwise be applied, if: 
  1.15     (a) it expects the benefits to the political subdivision of 
  1.16  the proposed abatement agreement to at least equal the costs to 
  1.17  the political subdivision of the proposed agreement; and 
  1.18     (b) it finds that doing so is in the public interest 
  1.19  because it will: 
  1.20     (1) increase or preserve tax base; 
  1.21     (2) provide employment opportunities in the political 
  1.22  subdivision; 
  1.23     (3) provide or help acquire or construct public facilities; 
  1.24     (4) help redevelop or renew blighted areas; or 
  1.25     (5) help provide access to services for residents of the 
  1.26  political subdivision. 
  2.1      Sec. 2.  Minnesota Statutes 1998, section 469.1813, 
  2.2   subdivision 2, is amended to read: 
  2.3      Subd. 2.  [ABATEMENT RESOLUTION.] (a) The governing body of 
  2.4   a political subdivision may grant an abatement only by adopting 
  2.5   an abatement resolution, specifying the terms of the abatement.  
  2.6   The resolution must also include a specific statement as to the 
  2.7   nature and extent of the public benefits which the governing 
  2.8   body expects to result from the agreement.  The abatement may 
  2.9   reduce all or part of the property tax levied by the political 
  2.10  subdivision on the parcel. 
  2.11     (b) The political subdivision may limit the abatement: 
  2.12     (1) to a specific dollar amount per year or in total; 
  2.13     (2) to the increase in property taxes resulting from 
  2.14  improvement of the property; 
  2.15     (3) to the increases in property taxes resulting from 
  2.16  increases in the market value or tax capacity of the property; 
  2.17  or 
  2.18     (4) in any other manner the governing body of the 
  2.19  subdivision determines is appropriate; or 
  2.20     (5) to the interest and penalty that would otherwise be due 
  2.21  on taxes that are deferred. 
  2.22     (c) The political subdivision may not abate tax 
  2.23  attributable to the value of the land or the areawide tax under 
  2.24  chapter 276A or 473F. 
  2.25     Sec. 3.  Minnesota Statutes 1998, section 469.1813, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 6a.  [DEFERMENT PAYMENT SCHEDULE.] When the tax is 
  2.28  deferred and the interest and penalty abated, the political 
  2.29  subdivision must set a payment schedule that does not exceed 
  2.30  twice the length of the deferment period.  The deferred payment 
  2.31  must be included with the current taxes due and payable in the 
  2.32  years the deferred payments are due and payable and must be 
  2.33  levied accordingly.