SF 2304

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing public accountability for taxpayer subsidies of
private business; prohibiting new tax increment financing districts; proposing
coding for new law in Minnesota Statutes, chapter 469; repealing Minnesota
Statutes 2006, sections 469.1812; 469.1813; 469.1814; 469.1815.

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

Section 1.

new text begin [469.1795] TERMINATION OF TAX INCREMENT FINANCING
AUTHORITY; BUSINESS SUBSIDIES RESTRICTED.
new text end

new text begin Subdivision 1. new text end

new text begin Additional activity prohibited. new text end

new text begin After May 31, 2007,
notwithstanding any other law to the contrary, the following actions are prohibited:
new text end

new text begin (1) certification of a new tax increment financing district; and
new text end

new text begin (2) modification of an existing tax increment financing plan to extend the duration
of a district, expand the activities to be financed within the district, or incur additional
expenses not included in the plan before May 31, 2007.
new text end

new text begin Subd. 2. new text end

new text begin Business subsidies. new text end

new text begin As used in this subdivision, "business subsidy" means
a grant; contribution of property, infrastructure, or services; a loan at rates below those
commercially available to the recipient; a reduction or deferral of a tax or fee; a guarantee
of a payment under a loan, lease, or other obligation; or a preferential use of government
facilities given to a business. A statutory or home rule charter city or a county may not
provide a business subsidy except as authorized by law or except for activities that could
have been financed by tax increment under sections 469.174 to 469.1791, subject to
the limitations in those provisions. If the city or county proposes to provide a business
subsidy, it must conduct a public hearing on the issue after published notice of the proposal
and the hearing in a newspaper of general circulation in the municipality.
new text end

new text begin Subd. 3. new text end

new text begin Subsidies from other jurisdictions' levies. new text end

new text begin For purposes of this
subdivision, a home rule charter or statutory city or a county that provides a business
subsidy under subdivision 2 is referred to as a "host municipality." A host municipality
may request that the county or city, or the school district, or both, within the boundaries of
which is located the business that receives the subsidy, provide a share of the subsidy. If
the governing body of the political subdivision that received the request, at a public hearing
after published notice, votes to provide a share of the subsidy, it shall transmit to the host
municipality a portion of the proceeds of its levy, not to exceed the tax increment that
would have been attributable to that political subdivision's levy on the parcel that contains
the business that receives the subsidy. The money must be used by the host municipality
to provide the business subsidy, subject to the limitations in sections 469.174 to 469.1791.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 469.1812; 469.1813; 469.1814; and 469.1815, new text end new text begin are
repealed. new text end new text begin Tax abatements granted under authority of those repealed sections prior to June
1, 2007, may continue according to the terms of those sections but no new abatements
may be granted on or after the effective date of this section.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective June 1, 2007.
new text end