HF 1041

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to border city enterprise zones; amending
Minnesota Statutes 2004, sections 272.0212,
subdivisions 1, 2; 469.169, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 272.0212,
subdivision 1, is amended to read:

Subdivision 1.

Exemption.

All qualified property in a
zone is exempt to the extent and for new text begin a period up to new text end the duration
provided by the zone designation and under sections 469.1731 to
469.1735.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for development
agreements approved after the day following final enactment and
beginning for property taxes payable in 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 272.0212,
subdivision 2, is amended to read:

Subd. 2.

Limits on exemption.

new text begin (a) new text end Property in a zone is
not exempt under this section from the following:

(1) special assessments;

(2) ad valorem property taxes specifically levied for the
payment of principal and interest on debt obligations; and

(3) all taxes levied by a school district, except school
referendum levies as defined in section 126C.17.

new text begin (b) The city may limit the property tax exemption to a
shorter period than the duration of the zone or to a percentage
of the property taxes payable or both.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for development
agreements approved after the day following final enactment and
beginning for property taxes payable in 2006.
new text end

Sec. 3.

Minnesota Statutes 2004, section 469.169, is
amended by adding a subdivision to read:

new text begin Subd. 17. new text end

new text begin Additional border city allocations. new text end

new text begin (a) In
addition to tax reductions authorized in subdivisions 7 to 16,
the commissioner shall allocate $750,000 for tax reductions to
border city enterprise zones in cities located on the western
border of the state. The commissioner shall make allocations to
zones in cities on the western border on a per capita basis.
Allocations made under this subdivision may be used for tax
reductions as provided in section 469.171, or for other offsets
of taxes imposed on or remitted by businesses located in the
enterprise zone, but only if the municipality determines that
the granting of the tax reduction or offset is necessary in
order to retain a business within or attract a business to the
zone. Any portion of the allocation provided in this paragraph
may alternatively be used for tax reductions under section
469.1732 or 469.1734.
new text end

new text begin (b) The commissioner shall allocate $750,000 for tax
reductions under section 469.1732 or 469.1734 to cities with
border city enterprise zones located on the western border of
the state. The commissioner shall allocate this amount among
the cities on a per capita basis. Any portion of the allocation
provided in this paragraph may alternatively be used for tax
reductions as provided in section 469.171.
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