SF 1238

as introduced - 90th Legislature (2017 - 2018) Posted on 02/23/2017 09:22am

A bill for an act
relating to taxes; authorizing special property tax abatement aid.

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

Section 1. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Abatements authorized. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an
abatement of local property taxes for taxes payable in 2017, provided that:
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new text begin (1) the property is classified as 1c, 3a (excluding utility real and personal property),
4c(1), 4c(10), or 4c(11);
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new text begin (2) on or before December 31, 2017, the taxpayer submits a written application to the
county auditor in the county in which abatement is sought; and
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new text begin (3) the taxpayer meets qualification requirements established in subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Appeals. new text end

new text begin An appeal may not be taken to the Tax Court from any order of the
county board made pursuant to the exercise of the discretionary authority granted in this
section.
new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for abatements under this section, a
taxpayer must:
new text end

new text begin (1) be located within one of the following municipalities surrounding Lake Mille Lacs:
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new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
Roosevelt;
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new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
Malmo, or township of Lakeside; or
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new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
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new text begin (2) document a reduction in gross receipts of five percent or greater between two
successive calendar years beginning in 2010 or later; and
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new text begin (3) be a business in one of the following industries, as defined within the North American
Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
historical sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by the county in
consultation with the commissioner of employment and economic development.
new text end

new text begin Subd. 4. new text end

new text begin State general levy in relief area. new text end

new text begin The counties of Aitkin, Crow Wing, and
Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
(excluding utility real and personal property), or 4c(1) that is located in the area described
by subdivision 3, clause (1), for taxes payable in 2017.
new text end

new text begin Subd. 5. new text end

new text begin Certification and transfer of funds. new text end

new text begin (a) By February 1, 2018, a county granting
a refund as required under subdivision 4 must certify the total amount of state general tax
refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
Lacs County must transfer an amount equal to the amount certified under this paragraph to
the county making the certification.
new text end

new text begin (b) By February 1, 2018, a county that has received an application for an abatement
authorized under subdivision 1 must certify to Mille Lacs County the total amount of
abatements for which applications have been received and approved. By March 1, 2018,
Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
to the county making the certification. By April 30, 2018, the county must issue refunds of
local property tax amounts to qualified taxpayers.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner of revenue; appropriation. new text end

new text begin An amount sufficient to make the
transfers required under subdivision 5 in fiscal year 2018 is appropriated from the general
fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
appropriation.
new text end

new text begin Subd. 7. new text end

new text begin Report to legislature. new text end

new text begin The commissioner of revenue must make a written report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes stating the amount of abatements and refunds given under this section by taxing
jurisdictions by February 1, 2019. The counties must provide the commissioner with the
information necessary to make the report.
new text end

new text begin Subd. 8. new text end

new text begin Refund eligibility. new text end

new text begin Only a taxpayer making all payments of property taxes for
taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.
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