1.1                          A bill for an act 
  1.2             relating to taxation; economic development abatements; 
  1.3             allowing abatement agreements for parcels in tax 
  1.4             increment financing districts; allowing extended time 
  1.5             periods under certain circumstances; amending 
  1.6             Minnesota Statutes 1998, section 469.1813, subdivision 
  1.7             4; Minnesota Statutes 1999 Supplement, section 
  1.8             469.1813, subdivision 6. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 469.1813, 
  1.11  subdivision 4, is amended to read: 
  1.12     Subd. 4.  [PROPERTY LOCATED IN TAX INCREMENT FINANCING 
  1.13  DISTRICTS.] The governing body of a governmental political 
  1.14  subdivision may not enter into a property tax abatement 
  1.15  agreement under sections 469.1812 to 469.1815 if the property 
  1.16  that provides for abatement of taxes on a parcel, if the 
  1.17  abatement will occur while the parcel is located in a tax 
  1.18  increment financing district. 
  1.19     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  1.20  469.1813, subdivision 6, is amended to read: 
  1.21     Subd. 6.  [DURATION LIMIT.] (a) A political subdivision may 
  1.22  grant an abatement for a period no longer than ten years, except 
  1.23  as provided under paragraph (b).  The subdivision may specify in 
  1.24  the abatement resolution a shorter duration.  If the resolution 
  1.25  does not specify a period of time, the abatement is for eight 
  1.26  years.  If an abatement has been granted to a parcel of property 
  1.27  and the period of the abatement has expired, the political 
  2.1   subdivision that granted the abatement may not grant another 
  2.2   abatement for eight years after the expiration of the first 
  2.3   abatement.  This prohibition does not apply to improvements 
  2.4   added after and not subject to the first abatement. 
  2.5      (b) A political subdivision proposing to abate taxes for a 
  2.6   parcel may request, in writing, that the other political 
  2.7   subdivisions in which the parcel is located grant an abatement 
  2.8   for the property.  If one of the other political subdivisions 
  2.9   declines, in writing, to grant an abatement or if 90 days pass 
  2.10  after receipt of the request to grant an abatement without a 
  2.11  written response from one of the political subdivisions, the 
  2.12  duration limit for an abatement for the parcel is increased to 
  2.13  15 years.  If the political subdivision which declined to grant 
  2.14  an abatement later grants an abatement for the parcel, the 
  2.15  15-year duration limit is reduced by one year for each year that 
  2.16  the declining political subdivision grants an abatement for the 
  2.17  parcel during the period of the abatement granted by the 
  2.18  requesting political subdivision.  The duration limit may not be 
  2.19  reduced below the limit under paragraph (a). 
  2.20     Sec. 3.  [EFFECTIVE DATE.] 
  2.21     Sections 1 and 2 are effective for taxes payable in 2001 
  2.22  and thereafter.