SF 22

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

  1.1                          A bill for an act 
  1.2             relating to taxation; providing public accountability 
  1.3             for taxpayer subsidies of private business; 
  1.4             prohibiting new or expanded tax increment financing 
  1.5             districts; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 469; repealing Minnesota Statutes 
  1.7             1998, sections 469.1813; 469.1814; and 469.1815. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [469.1792] [TERMINATION OF TAX INCREMENT 
  1.10  FINANCING AUTHORITY; BUSINESS SUBSIDIES RESTRICTED.] 
  1.11     Subdivision 1.  [ADDITIONAL ACTIVITY PROHIBITED.] After May 
  1.12  31, 1999, notwithstanding any other law to the contrary, the 
  1.13  following actions are prohibited: 
  1.14     (1) certification of a new tax increment financing 
  1.15  district; and 
  1.16     (2) modification of an existing tax increment financing 
  1.17  plan to extend the duration of a district, expand the activities 
  1.18  to be financed within the district, or incur additional expenses 
  1.19  not included in the plan before May 31, 1999. 
  1.20     Subd. 2.  [BUSINESS SUBSIDIES.] As used in this 
  1.21  subdivision, "business subsidy" means any grant, contribution of 
  1.22  property, infrastructure, or services, any loan at rates below 
  1.23  those commercially available to the recipient, any reduction or 
  1.24  deferral of any tax or any fee, any guarantee of any payment 
  1.25  under any loan, lease, or other obligation, or any preferential 
  1.26  use of government facilities given to a business.  A statutory 
  2.1   or home rule charter city or a county may not provide a business 
  2.2   subsidy except as authorized by law or except for activities 
  2.3   that could have been financed by tax increment under sections 
  2.4   469.174 to 469.1791, subject to the limitations in those 
  2.5   provisions.  If the city or county proposes to provide a 
  2.6   business subsidy, it must conduct a public hearing on the issue 
  2.7   after published notice of the proposal and the hearing in a 
  2.8   newspaper of general circulation in the municipality. 
  2.9      Sec. 2.  [REPEALER.] 
  2.10     Minnesota Statutes 1998, sections 469.1813; 469.1814; and 
  2.11  469.1815, are repealed.  Tax abatements granted under authority 
  2.12  of those repealed sections may continue according to the terms 
  2.13  of those sections but no new abatements may be granted on or 
  2.14  after the effective date of this section. 
  2.15     Sec. 3.  [EFFECTIVE DATE.] 
  2.16     Section 1 is effective June 1, 1999.