HF 2126

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

  1.1                          A bill for an act 
  1.2             relating to tax abatement; allowing abatement of 
  1.3             fiscal disparities; making school district abatement 
  1.4             authority uniform with that for cities and counties; 
  1.5             clarifying provisions; amending Minnesota Statutes 
  1.6             1998, sections 469.1813, subdivisions 1, 2, 3, 6, and 
  1.7             by adding a subdivision; and 469.1815, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 469.1813, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [AUTHORITY.] The governing body of a 
  1.12  political subdivision may grant an abatement of the taxes 
  1.13  imposed by the political subdivision on a parcel of property, if:
  1.14     (a) it expects the benefits to the political subdivision of 
  1.15  the proposed abatement agreement to at least equal the costs to 
  1.16  the political subdivision of the proposed agreement; and 
  1.17     (b) it finds that doing so is in the public interest 
  1.18  because it will: 
  1.19     (1) increase or preserve tax base; 
  1.20     (2) provide employment opportunities in the political 
  1.21  subdivision; 
  1.22     (3) provide or help acquire or construct public facilities; 
  1.23     (4) help redevelop or renew blighted areas; or 
  1.24     (5) help provide access to services for residents of the 
  1.25  political subdivision; or 
  1.26     (6) finance or provide public infrastructure. 
  2.1      Sec. 2.  Minnesota Statutes 1998, section 469.1813, 
  2.2   subdivision 2, is amended to read: 
  2.3      Subd. 2.  [ABATEMENT RESOLUTION.] The governing body of a 
  2.4   political subdivision may grant an abatement only by adopting an 
  2.5   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 resolution may 
  2.9   provide that the political subdivision will retain or transfer 
  2.10  to another political subdivision the abatement to pay for all or 
  2.11  part of the cost of acquisition or improvement of public 
  2.12  infrastructure, whether or not located on or adjacent to the 
  2.13  parcel for which the tax is abated.  The abatement may reduce 
  2.14  all or part of the property tax levied by amount for the 
  2.15  political subdivision on the parcel.  A political subdivision's 
  2.16  maximum annual amount for a parcel equals its total local tax 
  2.17  rate multiplied by the total net tax capacity of the parcel.  
  2.18  The political subdivision may limit the abatement: 
  2.19     (1) to a specific dollar amount per year or in total; 
  2.20     (2) to the increase in property taxes resulting from 
  2.21  improvement of the property; 
  2.22     (3) to the increases in property taxes resulting from 
  2.23  increases in the market value or tax capacity of the property; 
  2.24  or 
  2.25     (4) in any other manner the governing body of the 
  2.26  subdivision determines is appropriate. 
  2.27  The political subdivision may not abate tax attributable to the 
  2.28  value of the land or the areawide tax under chapter 276A or 
  2.29  473F, except as provided in this subdivision. 
  2.30     Sec. 3.  Minnesota Statutes 1998, section 469.1813, 
  2.31  subdivision 3, is amended to read: 
  2.32     Subd. 3.  [SCHOOL DISTRICT ABATEMENT PROCEDURE ABATEMENTS.] 
  2.33  Notwithstanding the amounts in subdivision 2, a school district 
  2.34  that grants an abatement under this section must limit the 
  2.35  abatement for any property to not more than an amount equal to 
  2.36  the product of:  (1) the property's net tax capacity, and (2) 
  3.1   the difference between the district's total tax rate for that 
  3.2   year and one-half of the general education tax rate for that 
  3.3   year.  An abatement granted under this section is not an 
  3.4   abatement for purposes of state aid or local levy under sections 
  3.5   127A.40 to 127A.51. 
  3.6      Sec. 4.  Minnesota Statutes 1998, section 469.1813, 
  3.7   subdivision 6, is amended to read: 
  3.8      Subd. 6.  [DURATION LIMIT.] (a) A political subdivision 
  3.9   other than a school district may grant an abatement for a period 
  3.10  no longer than ten years.  The subdivision may specify in the 
  3.11  abatement resolution a shorter duration.  If the resolution does 
  3.12  not specify a period of time, the abatement is for eight years.  
  3.13  If an abatement has been granted to a parcel of property and the 
  3.14  period of the abatement has expired, the political subdivision 
  3.15  that granted the abatement may not grant another abatement for 
  3.16  eight years after the expiration of the first abatement.  This 
  3.17  prohibition does not apply to improvements added after and not 
  3.18  subject to the first abatement. 
  3.19     (b) A school district may grant an abatement for only one 
  3.20  year at a time.  Once a school district has authorized an 
  3.21  abatement for a property, it may reauthorize the abatement in 
  3.22  any subsequent year for the next seven years, or nine years if 
  3.23  provided in the original abatement agreement.  This prohibition 
  3.24  does not apply to improvements added after and not subject to 
  3.25  the original abatement agreement. 
  3.26     Sec. 5.  Minnesota Statutes 1998, section 469.1813, is 
  3.27  amended by adding a subdivision to read: 
  3.28     Subd. 9.  [CONSENT OF PROPERTY OWNER NOT REQUIRED.] A 
  3.29  political subdivision may abate the taxes on a parcel under 
  3.30  sections 469.1812 to 469.1815 without obtaining the consent of 
  3.31  the property owner. 
  3.32     Sec. 6.  Minnesota Statutes 1998, section 469.1815, 
  3.33  subdivision 2, is amended to read: 
  3.34     Subd. 2.  [PROPERTY TAXES; ABATEMENT PAYMENT.] The total 
  3.35  property taxes shall be levied on the property and shall be due 
  3.36  and payable to the county at the times provided under section 
  4.1   279.01.  The political subdivision will pay the abatement to the 
  4.2   property owner, lessee, or a representative of the 
  4.3   bondholders or will retain the abatement to pay public 
  4.4   infrastructure costs, as provided by the abatement resolution. 
  4.5      Sec. 7.  [EFFECTIVE DATE.] 
  4.6      Sections 1 to 6 are effective the day following final 
  4.7   enactment.