HF 1446

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; property tax; eliminating the 
  1.3             one commercial-industrial parcel per county limitation 
  1.4             to receive the preferred class rate in certain cases; 
  1.5             amending Minnesota Statutes 1996, section 273.13, 
  1.6             subdivision 24. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 273.13, 
  1.9   subdivision 24, is amended to read: 
  1.10     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
  1.11  property and utility real and personal property, except class 5 
  1.12  property as identified in subdivision 31, clause (1), is class 
  1.13  3a.  It Each parcel has a class rate of three percent of the 
  1.14  first $100,000 of market value for taxes payable in 1993 and 
  1.15  thereafter, and 5.06 percent of the market value over 
  1.16  $100,000 except that in the case of contiguous parcels of 
  1.17  commercial and industrial property owned by the same person or 
  1.18  entity, only the first $100,000 of market value of the 
  1.19  contiguous parcels qualifies for the reduced class rate.  In the 
  1.20  case of state-assessed commercial, industrial, and utility 
  1.21  property owned by one person or entity, only one parcel has a 
  1.22  reduced class rate on the first $100,000 of market value.  In 
  1.23  the case of other commercial, industrial, and utility property 
  1.24  owned by one person or entity, only one parcel in each county 
  1.25  has a reduced class rate on the first $100,000 of market value, 
  1.26  except that:. 
  2.1      (1) if the market value of the parcel is less than 
  2.2   $100,000, and additional parcels are owned by the same person or 
  2.3   entity in the same city or town within that county, the reduced 
  2.4   class rate shall be applied up to a combined total market value 
  2.5   of $100,000 for all parcels owned by the same person or entity 
  2.6   in the same city or town within the county; 
  2.7      (2) in the case of grain, fertilizer, and feed elevator 
  2.8   facilities, as defined in section 18C.305, subdivision 1, or 
  2.9   232.21, subdivision 8, the limitation to one parcel per owner 
  2.10  per county for the reduced class rate shall not apply, but there 
  2.11  shall be a limit of $100,000 of preferential value per site of 
  2.12  contiguous parcels owned by the same person or entity.  Only the 
  2.13  value of the elevator portion of each parcel shall qualify for 
  2.14  treatment under this clause.  For purposes of this subdivision, 
  2.15  contiguous parcels include parcels separated only by a railroad 
  2.16  or public road right-of-way; and 
  2.17     (3) in the case of property owned by a nonprofit charitable 
  2.18  organization that qualifies for tax exemption under section 
  2.19  501(c)(3) of the Internal Revenue Code of 1986, as amended 
  2.20  through December 31, 1993, if the property is used as a business 
  2.21  incubator, the limitation to one parcel per owner per county for 
  2.22  the reduced class rate shall not apply, provided that the 
  2.23  reduced rate applies only to the first $100,000 of value per 
  2.24  parcel owned by the organization.  As used in this clause, a 
  2.25  "business incubator" is a facility used for the development of 
  2.26  nonretail businesses, offering access to equipment, space, 
  2.27  services, and advice to the tenant businesses, for the purpose 
  2.28  of encouraging economic development, diversification, and job 
  2.29  creation in the area served by the organization. 
  2.30     To receive the reduced class rate on additional parcels 
  2.31  under clause (1), (2), or (3), the taxpayer must notify the 
  2.32  county assessor that the taxpayer owns more than one parcel that 
  2.33  qualifies under clause (1), (2), or (3). 
  2.34     For purposes of this paragraph, parcels are considered to 
  2.35  be contiguous even if they are separated from each other by a 
  2.36  road, street, vacant lot, waterway, or other similar intervening 
  3.1   type of property. 
  3.2      (b) Employment property defined in section 469.166, during 
  3.3   the period provided in section 469.170, shall constitute class 
  3.4   3b and has a class rate of 2.3 percent of the first $50,000 of 
  3.5   market value and 3.6 percent of the remainder, except that for 
  3.6   employment property located in a border city enterprise zone 
  3.7   designated pursuant to section 469.168, subdivision 4, paragraph 
  3.8   (c), the class rate of the first $100,000 of market value and 
  3.9   the class rate of the remainder is determined under paragraph 
  3.10  (a), unless the governing body of the city designated as an 
  3.11  enterprise zone determines that a specific parcel shall be 
  3.12  assessed pursuant to the first clause of this sentence.  The 
  3.13  governing body may provide for assessment under the first clause 
  3.14  of the preceding sentence only for property which is located in 
  3.15  an area which has been designated by the governing body for the 
  3.16  receipt of tax reductions authorized by section 469.171, 
  3.17  subdivision 1. 
  3.18     (c) Structures which are (i) located on property classified 
  3.19  as class 3a, (ii) constructed under an initial building permit 
  3.20  issued after January 2, 1996, (iii) located in a transit zone as 
  3.21  defined under section 473.3915, subdivision 3, (iv) located 
  3.22  within the boundaries of a school district, and (v) not 
  3.23  primarily used for retail or transient lodging purposes, shall 
  3.24  have a class rate of four percent on that portion of the market 
  3.25  value in excess of $100,000 and any market value under $100,000 
  3.26  that does not qualify for the three percent class rate under 
  3.27  paragraph (a).  As used in item (v), a structure is primarily 
  3.28  used for retail or transient lodging purposes if over 50 percent 
  3.29  of its square footage is used for those purposes.  The four 
  3.30  percent rate shall also apply to improvements to existing 
  3.31  structures that meet the requirements of items (i) to (v) if the 
  3.32  improvements are constructed under an initial building permit 
  3.33  issued after January 2, 1996, even if the remainder of the 
  3.34  structure was constructed prior to January 2, 1996.  For the 
  3.35  purposes of this paragraph, a structure shall be considered to 
  3.36  be located in a transit zone if any portion of the structure 
  4.1   lies within the zone.  If any property once eligible for 
  4.2   treatment under this paragraph ceases to remain eligible due to 
  4.3   revisions in transit zone boundaries, the property shall 
  4.4   continue to receive treatment under this paragraph for a period 
  4.5   of three years. 
  4.6      Sec. 2.  [EFFECTIVE DATE.] 
  4.7      Section 1 is effective for the 1998 assessment and 
  4.8   thereafter, for taxes payable in 1999 and thereafter.