HF 2353

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

A bill for an act
relating to taxation; tax increment financing;
prohibiting the inclusion in a district or the use of
increment to assist certain facilities as defined
under federal law; amending Minnesota Statutes 2004,
section 469.176, subdivisions 4l, 7.

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

Section 1.

Minnesota Statutes 2004, section 469.176,
subdivision 4l, is amended to read:

Subd. 4l.

Prohibited facilities.

(a) No tax increment
from any district may be used for:

(1) a commons area used as a public park; deleted text begin or
deleted text end

(2) a facility used for social, recreational, or conference
purposes new text begin ; or
new text end

new text begin (3) a property that includes a casino or other facility
conducting class III gaming as defined in United States Code,
title 25, section 2703, regardless of whether it is conducted by
an Indian tribe or tribal business new text end .

(b) This subdivision does not apply to a privately owned
facility for conference purposes or a parking structure.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for
expenditures of increment made after June 30, 2005, regardless
of when the request for certification of the district was made.
new text end

Sec. 2.

Minnesota Statutes 2004, section 469.176,
subdivision 7, is amended to read:

Subd. 7.

Parcels not includable in districts.

(a) The
authority may request inclusion in a tax increment financing
district and the county auditor may certify the original tax
capacity of a parcel or a part of a parcel that qualified under
the provisions of section 273.111 or 273.112 or chapter 473H for
taxes payable in any of the five calendar years before the
filing of the request for certification only for:

(1) a district in which 85 percent or more of the planned
buildings and facilities (determined on the basis of square
footage) are a qualified manufacturing facility or a qualified
distribution facility or a combination of both; or

(2) a qualified housing district.

(b)(1) A distribution facility means buildings and other
improvements to real property that are used to conduct
activities in at least each of the following categories:

(i) to store or warehouse tangible personal property;

(ii) to take orders for shipment, mailing, or delivery;

(iii) to prepare personal property for shipment, mailing,
or delivery; and

(iv) to ship, mail, or deliver property.

(2) A manufacturing facility includes space used for
manufacturing or producing tangible personal property, including
processing resulting in the change in condition of the property,
and space necessary for and related to the manufacturing
activities.

(3) To be a qualified facility, the owner or operator of a
manufacturing or distribution facility must agree to pay and pay
90 percent or more of the employees of the facility at a rate
equal to or greater than 160 percent of the federal minimum wage
for individuals over the age of 20.

new text begin (c) The authority may not request inclusion in a tax
increment financing district and the county auditor may not
certify the original tax capacity of a parcel or a part of a
parcel that contains or is expected to contain uses, facilities,
properties, or businesses containing class III gaming, as
defined in United States Code, title 25, section 2703,
regardless of whether it is conducted by an Indian tribe or
tribal business.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for parcels for
which the request for certification is made after June 30, 2005.
new text end