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Minnesota Legislature

Office of the Revisor of Statutes

SF 484

as introduced - 89th Legislature (2015 - 2016) Posted on 02/03/2015 08:33am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; property; authorizing municipalities to grant property
tax exemptions for certain new and expanding business property; amending
Minnesota Statutes 2014, section 272.02, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 469.

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

Section 1.

Minnesota Statutes 2014, section 272.02, is amended by adding a
subdivision to read:


new text begin Subd. 100. new text end

new text begin New or expanding business. new text end

new text begin Buildings and other improvements of a new
or expanding qualified business are exempt for up to five years as provided under section
469.1817, except this exemption does not apply to the tax imposed under section 275.025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2016
and thereafter.
new text end

Sec. 2.

new text begin [469.1817] PROPERTY TAX EXEMPTION; NEW OR EXPANDING
BUSINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Municipality" means the statutory or home rule charter city in which the
property is located or the county for a property located in an unincorporated area.
new text end

new text begin (c) "Qualified business" means a business that intends to construct a new or expand
an existing facility in the municipality and that is engaged in:
new text end

new text begin (1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;
new text end

new text begin (2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales; and
new text end

new text begin (3) research and development related to the activities listed in clause (1) or (2).
new text end

new text begin Subd. 2. new text end

new text begin Authority to grant exemption. new text end

new text begin (a) Upon application, the governing
body of a municipality may by resolution grant an exemption from property taxation
on improvements made by or for a qualified business. The exemption is limited to
improvements made after adoption of the resolution. Before adopting the resolution, the
governing body must publish notice as required in subdivision 3 and make findings that:
new text end

new text begin (1) the qualified business does not compete with other businesses in the county for
customers or sales;
new text end

new text begin (2) the qualified business would not undertake the investment without the provision
of the property tax exemption; and
new text end

new text begin (3) granting of the exemption will not adversely affect the property tax base of
the city, county, or school district.
new text end

new text begin The resolution must specify the duration of the exemption provided, not to exceed five
years.
new text end

new text begin (b) The municipality must have and retain for a period ending one year after
the termination of the property tax exemption under this section supporting written
documentation for its findings under paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Hearing and published notice required. new text end

new text begin Before granting an exemption
under this section, the governing body of the municipality must hold a public hearing after
publishing notice in a newspaper of general circulation in the municipality at least once,
not less than ten days nor more than 30 days before the date of the hearing. The notice
must describe the nature and the expected business use of the planned improvements.
new text end

new text begin Subd. 4. new text end

new text begin Timing. new text end

new text begin Exemptions granted under this section apply to the first
assessment year following adoption of the resolution granting the exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for property taxes payable in 2016 and thereafter.
new text end