Subdivision 1. Scope.
For purposes of sections
, the following terms
have the meanings given.
Subd. 2. Foreign trade zone.
"Foreign trade zone" means a foreign trade zone designated
pursuant to United States Code, title 19, section 81a, for the right to use the powers provided in
United States Code, title 19, sections 81a to 81u, or a subzone authorized by the foreign trade zone.
Subd. 3. Foreign trade zone authority.
"Foreign trade zone authority" means the Greater
Metropolitan Foreign Trade Zone Commission number 119, a joint powers authority created
by the county of Hennepin, the cities of Minneapolis and Bloomington, and the Metropolitan
Airports Commission, under the authority of section
, and includes
any other political subdivisions that enter into the authority after its creation, as well as the county
in which the zone is located. Notwithstanding section
, the members of the authority are
not required to have separate authority to establish or operate a foreign trade zone.
Subd. 4. International economic development zone or zone.
An "international economic
development zone" or "zone" is a zone so designated under section
Subd. 5. Person.
"Person" includes an individual, corporation, partnership, limited liability
company, association, or any other entity.
Subd. 6. Qualified business.
"Qualified business" means a person who has signed a business
subsidy agreement as required under sections
469.323, subdivision 4
carrying on a trade or business at a place of business located within the international economic
development zone that is:
(1)(i) engaged in the furtherance of international export or import of goods as a freight
forwarder; and (ii) certified by the foreign trade zone authority as a trade or business that furthers
the purpose of developing international distribution capacity and capability; or
(2) the owner or operator of a regional distribution center.
Subd. 7. Regional distribution center.
A "regional distribution center" is a distribution
center developed within a foreign trade zone. The regional distribution center must have as its
primary purpose, the facilitation of the gathering of freight for the purpose of centralizing the
functions necessary for the shipment of freight in international commerce, including, but not
limited to, security and customs functions.
Subd. 8. International economic development zone percentage or zone percentage.
"International economic development 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
located in the zone
for the taxable year which is land, buildings, machinery and equipment, inventories, and other
tangible personal property that is a regional distribution center or is used in the furtherance
of the taxpayer's freight forwarding operations over the property factor numerator determined
(ii) the ratio of the taxpayer's international economic development zone payroll factor under
subdivision 9 over the payroll factor numerator determined under section
(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
290.17, subdivision 4
, paragraph (j).
Subd. 9. International economic development zone payroll factor or international
economic development zone payroll.
"International economic development zone payroll factor"
or "international economic development zone payroll" is that portion of the payroll factor under
used to operate a regional distribution center, or used in the furtherance of the
taxpayer's freight forwarding operations that represents:
(1) wages or salaries paid to an individual for services performed in the international
economic development zone; or
(2) wages or salaries paid to individuals working from offices within the international
economic development 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. However, in no case
does zone payroll include wages paid for work performed outside the zone of an employee who
performs more than ten percent of total services for the employer outside the zone.
Subd. 10. Freight forwarder.
"Freight forwarder" is a business that, for compensation,
ensures that goods produced or sold by another business move from point of origin to point
History: 1Sp2005 c 3 art 10 s 13