SF 1432

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 01:55pm

A bill for an act
relating to taxation; property; providing state general tax exemption for qualified
businesses.

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

Section 1. new text begin STATE GENERAL TAX EXEMPTION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 275.025, property owned or leased by
a qualified business under this section is not subject to the levy under Minnesota Statutes,
section 275.025, subdivision 1, for property taxes payable in 2021 and 2022. The property
must have been owned or leased by the qualified business on January 2, 2020, and continue
to be owned or leased by the qualified business in the taxes payable year in which the
exemption under this section is sought. For the purposes of this section, a "qualified business"
means a business that operates from a physical location in Minnesota that provides hospitality
services to the public, including but not limited to businesses that on November 1, 2020,
were included on the current list of businesses maintained by the commissioner of
employment and economic development pursuant to an agreement between the commissioner
of employment and economic development and the United States Bureau of Labor Statistics
for use in the Quarterly Census of Employment and Wages as a business with a primary
North American Industry Classification System code of:
new text end

new text begin (1) 31212 - Breweries;
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new text begin (2) 31213 - Wineries;
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new text begin (3) 31214 - Distilleries;
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new text begin (4) 71395 - Bowling Centers;
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new text begin (5) 72111 - Hotels and Motels;
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new text begin (6) 7223 - Specialty Foods;
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new text begin (7) 7224 - Drinking Places (alcoholic beverages); or
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new text begin (8) 7225 - Restaurants.
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new text begin (b) To receive an exemption under this section, a property owner must apply to the
commissioner of revenue by July 1 in each taxes payable year for which an exemption is
sought. If application is made after any portion of the state general tax has been paid, the
portion of the tax already paid must be refunded to the taxpayer by the county treasurer as
soon as practicable. The commissioner of revenue must determine the form and manner of
the application under this paragraph.
new text end

new text begin (c) For property taxes payable in 2021 and 2022, the commercial-industrial share of the
certified levy under Minnesota Statutes, section 275.025, subdivision 1, must be reduced
by a fraction equal to the tax capacity of all property approved for an exemption under this
section, divided by the total commercial-industrial tax capacity, as defined in Minnesota
Statutes, section 275.025, subdivision 2, for each taxes payable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end