2004 Minnesota Statutes

     469.310 Definitions. 

    Subdivision 1.    Scope.  For purposes of sections 
 469.310 to 469.320, the following terms have the meanings given. 

    Subd. 2.    Agricultural processing facility.  
 "Agricultural processing facility" means one or more facilities 
 or operations that transform, package, sort, or grade livestock 
 or livestock products, agricultural commodities, or plants or 
 plant products into goods that are used for intermediate or 
 final consumption including goods for nonfood use, and 
 surrounding property. 

    Subd. 3.    Applicant.  "Applicant" means a local 
 government unit or units applying for designation of an area as 
 a job opportunity building zone or a joint powers board, 
 established under section 471.59, acting on behalf of two or 
 more local government units. 

    Subd. 4.    Commissioner.  "Commissioner" means the 
 commissioner of employment and economic development. 

    Subd. 5.    Development plan.  "Development plan" means 
 a plan meeting the requirements of section 469.311. 

    Subd. 6.    Job opportunity building zone or zone.  "Job 
 opportunity building zone" or "zone" means a zone designated by 
 the commissioner under section 469.314, and includes an 
 agricultural processing facility zone. 

    Subd. 7.    Job opportunity building zone percentage or 
 zone percentage.  "Job opportunity building zone percentage" 
 or "zone percentage" means the following fraction reduced to a 
 percentage: 

    (1) the numerator of the fraction is: 

    (i) the ratio of the taxpayer's property factor under 
 section 290.191 located in the zone for the taxable year over 
 the property factor numerator determined under section 290.191, 
 plus 

    (ii) the ratio of the taxpayer's job opportunity building 
 zone payroll factor under subdivision 8 over the payroll factor 
 numerator determined under section 290.191; and 

    (2) the denominator of the fraction is two. 

    When calculating the zone percentage for a business that is 
 part of a unitary business as defined under section 290.17, 
 subdivision 4, the denominator of the payroll and property 
 factors is the Minnesota payroll and property of the unitary 
 business as reported on the combined report under section 
 290.17, subdivision 4, paragraph (j). 

    Subd. 8.    Job opportunity building zone payroll factor. 
  "Job opportunity building zone payroll factor" or "job 
 opportunity building zone payroll" is that portion of the 
 payroll factor under section 290.191 that represents: 

    (1) wages or salaries paid to an individual for services 
 performed in a job opportunity building zone; or 

    (2) wages or salaries paid to individuals working from 
 offices within a job opportunity building zone if their 
 employment requires them to work outside the zone and the work 
 is incidental to the work performed by the individual within the 
 zone. 

    Subd. 9.    Local government unit.  "Local government 
 unit" means a statutory or home rule charter city, county, town, 
 Iron Range Resources and Rehabilitation Agency, Regional 
 Development Commission, or a federally designated economic 
 development district. 

    Subd. 10.    Person.  "Person" includes an individual, 
 corporation, partnership, limited liability company, 
 association, or any other entity. 

    Subd. 11.    Qualified business.  (a) "Qualified 
 business" means a person carrying on a trade or business at a 
 place of business located within a job opportunity building zone.

    (b) A person that relocates a trade or business from 
 outside a job opportunity building zone into a zone is not a 
 qualified business, unless the business: 

    (1)(i) increases full-time employment in the first full 
 year of operation within the job opportunity building zone by at 
 least 20 percent measured relative to the operations that were 
 relocated and maintains the required level of employment for 
 each year the zone designation applies; or 

    (ii) makes a capital investment in the property located 
 within a zone equivalent to ten percent of the gross revenues of 
 operation that were relocated in the immediately preceding 
 taxable year; and 

    (2) enters a binding written agreement with the 
 commissioner that: 

    (i) pledges the business will meet the requirements of 
 clause (1); 

    (ii) provides for repayment of all tax benefits enumerated 
 under section 469.315 to the business under the procedures in 
 section 469.319, if the requirements of clause (1) are not met 
 for the taxable year or for taxes payable during the year in 
 which the requirements were not met; and 

    (iii) contains any other terms the commissioner determines 
 appropriate. 

    Subd. 12.    Relocates.  (a) "Relocates" means that the 
 trade or business: 

    (1) ceases one or more operations or functions at another 
 location in Minnesota and begins performing substantially the 
 same operations or functions at a location in a job opportunity 
 building zone; or 

    (2) reduces employment at another location in Minnesota 
 during a period starting one year before and ending one year 
 after it begins operations in a job opportunity building zone 
 and its employees in the job opportunity building zone are 
 engaged in the same line of business as the employees at the 
 location where it reduced employment. 

    (b) "Relocate" does not include an expansion by a business 
 that establishes a new facility that does not replace or 
 supplant an existing operation or employment, in whole or in 
 part. 

    (c) "Trade or business" includes any business entity that 
 is substantially similar in operation or ownership to the 
 business entity seeking to be a qualified business under this 
 section. 

    HIST: 1Sp2003 c 4 s 1; 1Sp2003 c 21 art 1 s 15