SF 3447

as introduced - 89th Legislature (2015 - 2016) Posted on 04/22/2016 09:22am

A bill for an act
relating to taxation; property; authorizing a state general tax refund for certain
businesses; requiring a report; appropriating money; proposing coding for new
law in Minnesota Statutes, chapter 469.

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

Section 1.

new text begin [469.501] STATE GENERAL TAX REFUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (c) "Job creation zone" means an area including one or more contiguous census
tracts, as determined and measured by the United States Census Bureau, where the
unemployment rate average for the immediately preceding three years is at least 75 percent
higher than the statewide average unemployment rate as estimated by the United States
Census Bureau using data collected in the most recent American Community Survey.
new text end

new text begin (d) "Employee" and "wages" have the meanings given in section 290.92, subdivision
1.
new text end

new text begin Subd. 2. new text end

new text begin Eligible business. new text end

new text begin (a) An eligible business located within the seven-county
metropolitan area, or located outside the seven-county metropolitan area but in a city with
a population greater than 40,000, is an employer that: (1) is located in a job creation zone
as defined in subdivision 1; (2) pays at least 50 percent of the business's total wages to
employees who reside either within the job creation zone where the business is located or
any contiguous census tract; and (3) is a for-profit business.
new text end

new text begin (b) An eligible business located outside the seven-county metropolitan area and in a
city or township with a population less than 40,000 is an employer that: (1) pays at least
50 percent of the business's total wages to employees who reside in any job creation
zone not located in either the seven-county metropolitan area or in a city located outside
the seven-county metropolitan area with a population greater than 40,000; and (2) is a
for-profit business.
new text end

new text begin (c) If a business received a refund under this section in the immediately preceding
year, but does not qualify for a refund in the current year because the business is located
in an area that no longer meets the requirements of a job creation zone, as defined in
subdivision 1, the business may apply for a onetime refund in the current year equal to
one-half the amount of the refund issued to the business in the immediately preceding
year. A business that relocates outside of a job creation zone shall not be eligible for a
refund under this paragraph.
new text end

new text begin Subd. 3. new text end

new text begin Refund; authorized. new text end

new text begin The commissioner may approve an application for a
refund of the state general tax paid under section 275.025 applicable to that portion of
the property occupied by an eligible business. The owner of an eligible business must
apply annually to the commissioner by July 1 of each year on a form prescribed by the
commissioner in order to receive a refund for that year. Upon approval, the commissioner
shall notify the commissioner of revenue by September 1. The refund is equal to the state
general tax payable on the property where the eligible business is located multiplied by a
ratio, the numerator of which is the area of the property occupied by the eligible business
and the denominator of which is the total area of the property where the business is
located. The commissioner of revenue shall pay the amount determined under this section
to the eligible business owner by December 1.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the refunds under this
section is appropriated annually from the general fund to the commissioner of revenue.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15, 2023, the commissioner of employment and
economic development must provide a written report to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes and employment
information regarding the refunds issued under this section. The report must include, at a
minimum, the number of refunds issued, the amount of each refund, the identification and
location of each business that received a refund, and employment data used to determine
eligibility under this section. The report must comply with sections 3.195 and 3.197.
new text end

new text begin Subd. 6. new text end

new text begin Sunset. new text end

new text begin This section applies to refunds for state general tax payments made
for taxes payable in 2016 through taxes payable in 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed in calendar year
2016 for refunds of the state general tax payable in 2016 through 2026.
new text end