1.1                          A bill for an act 
  1.2             relating to taxation; extending the duration of border 
  1.3             city enterprise zones; amending Minnesota Statutes 
  1.4             1994, sections 469.167, subdivision 2; and 469.173, 
  1.5             subdivision 7; Minnesota Statutes 1995 Supplement, 
  1.6             section 469.169, subdivisions 9 and 10. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 469.167, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [DURATION.] The designation of an area as an 
  1.11  enterprise zone shall be effective for seven years after the 
  1.12  date of designation, except that enterprise zones in border 
  1.13  cities eligible to receive allocations for tax reductions under 
  1.14  section 469.169, subdivisions 7 and 8, and under section 
  1.15  469.171, subdivision 6a or 6b, shall be effective until these 
  1.16  allocations have been expended terminated by resolution adopted 
  1.17  by the city in which the border city enterprise zone is located. 
  1.18     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  1.19  469.169, subdivision 9, is amended to read: 
  1.20     Subd. 9.  [ADDITIONAL BORDER CITY ALLOCATIONS.] In addition 
  1.21  to tax reductions authorized in subdivisions 7 and 8, the 
  1.22  commissioner may allocate $1,100,000 for tax reductions to 
  1.23  border city enterprise zones in cities located on the western 
  1.24  border of the state, and $300,000 to the border city enterprise 
  1.25  zone in the city of Duluth.  The commissioner shall make 
  1.26  allocations to zones in cities on the western border by 
  2.1   evaluating which cities' applications for allocations relate to 
  2.2   business prospects that have the greatest positive economic 
  2.3   impact.  Allocations made under this subdivision may be used for 
  2.4   tax reductions as provided in section 469.171, or other offsets 
  2.5   of taxes imposed on or remitted by businesses located in the 
  2.6   enterprise zone, but only if the municipality determines that 
  2.7   the granting of the tax reduction or offset is necessary in 
  2.8   order to retain a business within or attract a business to the 
  2.9   zone.  Limitations on allocations under section 469.169, 
  2.10  subdivision 7, do not apply to this allocation.  Enterprise 
  2.11  zones that receive allocations under this subdivision may 
  2.12  continue in effect for purposes of those allocations through 
  2.13  December 31, 1995. 
  2.14     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  2.15  469.169, subdivision 10, is amended to read: 
  2.16     Subd. 10.  [ADDITIONAL BORDER CITY ALLOCATIONS.] In 
  2.17  addition to tax reductions authorized in subdivisions 7, 8, and 
  2.18  9, the commissioner may allocate $1,500,000 for tax reductions 
  2.19  to border city enterprise zones in cities located on the western 
  2.20  border of the state.  The commissioner shall make allocations to 
  2.21  zones in cities on the western border on a per capita basis.  
  2.22  Allocations made under this subdivision may be used for tax 
  2.23  reductions as provided in section 469.171, or other offsets of 
  2.24  taxes imposed on or remitted by businesses located in the 
  2.25  enterprise zone, but only if the municipality determines that 
  2.26  the granting of the tax reduction or offset is necessary in 
  2.27  order to retain a business within or attract a business to the 
  2.28  zone.  Limitations on allocations under section 469.169, 
  2.29  subdivision 7, do not apply to this allocation.  Enterprise 
  2.30  zones that receive allocations under this subdivision may 
  2.31  continue in effect for purposes of those allocations through 
  2.32  December 31, 1996. 
  2.33     Sec. 4.  Minnesota Statutes 1994, section 469.173, 
  2.34  subdivision 7, is amended to read: 
  2.35     Subd. 7.  [REPEALER.] Sections 469.169, 469.171, 469.172, 
  2.36  and this section are effective for border city enterprise zones 
  3.1   until the enterprise zone is terminated by resolution adopted by 
  3.2   the city in which the border city enterprise zone is located.  
  3.3   For all other enterprise zones, sections 469.169, 469.171, 
  3.4   469.172, and this section are repealed effective December 31, 
  3.5   1996.  
  3.6      Sec. 5.  [EFFECTIVE DATE.] 
  3.7      Sections 1 to 4 are effective the day following final 
  3.8   enactment for border city enterprise zones existing on that date.