HF 2316

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to job opportunity building zones; limiting 
  1.3             tax incentives for certain retailers; amending 
  1.4             Minnesota Statutes 2003 Supplement, section 469.310, 
  1.5             subdivision 11. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   469.310, subdivision 11, is amended to read: 
  1.9      Subd. 11.  [QUALIFIED BUSINESS.] (a) "Qualified business" 
  1.10  means a person carrying on a trade or business at a place of 
  1.11  business located within a job opportunity building zone. 
  1.12     (b) A person that relocates a trade or business from 
  1.13  outside a job opportunity building zone into a zone is not a 
  1.14  qualified business, unless the business: 
  1.15     (1)(i) increases full-time employment in the first full 
  1.16  year of operation within the job opportunity building zone by at 
  1.17  least 20 percent measured relative to the operations that were 
  1.18  relocated and maintains the required level of employment for 
  1.19  each year the zone designation applies; or 
  1.20     (ii) makes a capital investment in the property located 
  1.21  within a zone equivalent to ten percent of the gross revenues of 
  1.22  operation that were relocated in the immediately preceding 
  1.23  taxable year; and 
  1.24     (2) enters a binding written agreement with the 
  1.25  commissioner that: 
  2.1      (i) pledges the business will meet the requirements of 
  2.2   clause (1); 
  2.3      (ii) provides for repayment of all tax benefits enumerated 
  2.4   under section 469.315 to the business under the procedures in 
  2.5   section 469.319, if the requirements of clause (1) are not met 
  2.6   for the taxable year or for taxes payable during the year in 
  2.7   which the requirements were not met; and 
  2.8      (iii) contains any other terms the commissioner determines 
  2.9   appropriate. 
  2.10     (c) A business is not a qualified business if, at its 
  2.11  location or locations in the zone, the business is primarily 
  2.12  engaged in making retail sales to purchasers who are physically 
  2.13  present at the business's zone location.  
  2.14     [EFFECTIVE DATE.] This section is effective the day 
  2.15  following final enactment and applies to any business entering a 
  2.16  business subsidy agreement for a job opportunity development 
  2.17  zone after that date.