1.1                          A bill for an act 
  1.2             relating to taxation; providing that the commissioner 
  1.3             of revenue may waive limitations on the amount of 
  1.4             border city tax reductions; amending Minnesota 
  1.5             Statutes 1998, section 469.169, subdivision 12. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 469.169, 
  1.8   subdivision 12, is amended to read: 
  1.9      Subd. 12.  [ADDITIONAL ZONE ALLOCATIONS.] (a) In addition 
  1.10  to tax reductions authorized in subdivisions 7, 8, 9, 10, and 
  1.11  11, the commissioner shall allocate tax reductions to border 
  1.12  city enterprise zones located on the western border of the state.
  1.13  The cumulative total amount of tax reductions for all years of 
  1.14  the program under sections 469.1731 to 469.1735, is limited to: 
  1.15     (1) for the city of Breckenridge, $394,000; 
  1.16     (2) for the city of Dilworth, $118,200; 
  1.17     (3) for the city of East Grand Forks, $788,000; 
  1.18     (4) for the city of Moorhead, $591,000; and 
  1.19     (5) for the city of Ortonville, $78,800. 
  1.20     Allocations made under this subdivision may be used for tax 
  1.21  reductions provided in section 469.1732 or 469.1734 or for 
  1.22  reimbursements under section 469.1735, subdivision 3, but only 
  1.23  if the municipality determines that the granting of the tax 
  1.24  reduction or offset is necessary to enable a business to expand 
  1.25  within a city or to attract a business to a city.  Limitations 
  2.1   on allocations under subdivision 7 do not apply to this 
  2.2   allocation. 
  2.3      (b) The limit in the allocation in paragraph (a) for a 
  2.4   municipality may be waived by the commissioner if the 
  2.5   commissioner of revenue finds that the municipality must provide 
  2.6   an incentive under section 469.1732 or 469.1734 that, by itself 
  2.7   or when aggregated with all other tax reductions granted by the 
  2.8   municipality under those provisions, exceeds the municipality's 
  2.9   maximum allocation under paragraph (a), in order to obtain or 
  2.10  retain a business in the city that would not occur in the 
  2.11  municipality without the incentive.  The limit may be waived 
  2.12  only if the commissioner finds that the business for which the 
  2.13  tax incentives are to be provided: 
  2.14     (1) requires a private capital investment of at least 
  2.15  $1,000,000 within the city; 
  2.16     (2) employs at least 25 new or additional full-time 
  2.17  equivalent employees within the city; and 
  2.18     (3) pays its employees at the location in the city wages 
  2.19  that, on the average, will exceed the average wage paid in the 
  2.20  county in which the municipality is located. 
  2.21     Sec. 2.  [COST ESTIMATES.] 
  2.22     Any waiver granted under Minnesota Statutes, section 
  2.23  469.169, subdivision 12, paragraph (b), must be reported within 
  2.24  60 days to the commissioner of finance and the chairs of the 
  2.25  house and senate tax committees.  For purposes of state 
  2.26  budgeting and revenue forecasting, no cost will be assigned to 
  2.27  Minnesota Statutes, section 469.169, subdivision 12, paragraph 
  2.28  (b), until the commissioner of revenue has approved the waiver. 
  2.29     Sec. 3.  [EFFECTIVE DATE.] 
  2.30     Sections 1 and 2 are effective the day following final 
  2.31  enactment.