HF 1675

as introduced - 88th Legislature (2013 - 2014) Posted on 04/02/2013 11:38am

A bill for an act
relating to taxation; property; increasing the permitted holding period for exempt
property held for economic development for certain cities; amending Minnesota
Statutes 2012, section 272.02, subdivision 39.

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

Section 1.

Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read:

Subd. 39.

Economic development; public purpose.

The holding of property by a
political subdivision of the state for later resale for economic development purposes shall
be considered a public purpose in accordance with subdivision 8 for a period not to exceed
nine years, except that for property located in a city of deleted text begin 5,000 deleted text end new text begin 20,000 new text end population or under
deleted text begin that is located outside of the metropolitan area as defined in section 473.121, subdivision
2 deleted text end , the period must not exceed 15 years.

The holding of property by a political subdivision of the state for later resale (1)
which is purchased or held for housing purposes, or (2) which meets the conditions
described in section 469.174, subdivision 10, shall be considered a public purpose in
accordance with subdivision 8.

The governing body of the political subdivision which acquires property which is
subject to this subdivision shall after the purchase of the property certify to the city or
county assessor whether the property is held for economic development purposes or
housing purposes, or whether it meets the conditions of section 469.174, subdivision 10.
If the property is acquired for economic development purposes and buildings or other
improvements are constructed after acquisition of the property, and if more than one-half
of the floor space of the buildings or improvements which is available for lease to or use
by a private individual, corporation, or other entity is leased to or otherwise used by
a private individual, corporation, or other entity the provisions of this subdivision shall
not apply to the property. This subdivision shall not create an exemption from section
272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of
law providing for the taxation of or for payments in lieu of taxes for publicly held property
which is leased, loaned, or otherwise made available and used by a private person.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2013 and
thereafter and for taxes payable in 2014 and thereafter.
new text end