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Minnesota Legislature

Office of the Revisor of Statutes

41A.06 PROJECT TAXES AND OTHER CHARGES.
    Subdivision 1. Appropriation. The payments, taxes, and governmental charges described in
this section which are received as a consequence of the undertaking, completion, and operation
of each agricultural resource loan project for which a loan guaranty is made by the state are
appropriated to the loan guaranty fund. This appropriation shall not lapse at the close of any fiscal
year under the provisions of section 16A.28, and the receipts from the appropriation shall remain
available as provided in section 41A.05, subdivision 1. The state is not obligated, however,
to continue the appropriation with respect to charges not yet collected, except to the extent
determined to be necessary for compliance with the terms of the loan guaranty agreement.
    Subd. 2. Allocation to project accounts. Receipts of charges related to a particular project
shall be deposited and recorded in its project account in the guaranty fund; but the board may
reallocate receipts in any project account which cause the amount held in the account to exceed
the minimum balance established initially pursuant to section 41A.04, subdivision 3, clause (2).
The reallocation may be made to another project account for the purpose of maintaining the
minimum balance in the account.
    Subd. 3. Payments by borrowers. Guaranty and commitment fees paid by borrowers
pursuant to the loan guaranty provision required by section 41A.03, subdivision 3, clause (j), and
repayments by borrowers of amounts advanced by the state under contracts referred to in section
41A.03, subdivision 4, shall be deposited in the project account for the borrower's project and
shall not be disbursed or transferred for any purpose other than the fulfillment of the state's
obligations under the loan guaranty for that project. Funds may be transferred out of the account if
the minimum required balance in the project account is maintained and exceeds the aggregate
amount of fees and payments previously received from the borrower plus interest received from
the investment thereof.
    Subd. 4. Sales and use taxes. All collections of the excise taxes imposed by chapter 297A
upon retail sales, and upon the privilege of use, storage, or consumption in Minnesota, of personal
property and services purchased for the construction or operation of any project for which a loan
guaranty has been made or conditionally committed, less any refunds required by law and a
proportionate share of the cost of administration and enforcement of the assessment and collection
of the taxes, are appropriated and shall be deposited from the general fund into the project account
in the guaranty fund at least once each year from and after the date of the conditional commitment.
The commissioner of finance shall secure from each borrower the amount of taxes so imposed and
from the commissioner of revenue the amount of refunds or costs to be deducted from them.
    Subd. 5. Property tax increments. If tax increment financing is to be used for the project,
the applicant for a loan guaranty or bonds for any project, and the county in which the project is
situated, shall do all acts and things necessary for the computation and segregation of property
tax increments resulting from the construction of the project in accordance with the provisions
of section 469.149, and for the remittance to the commissioner of finance, for deposit in the
loan guaranty fund, of all tax increments received from and after the date of the conditional
commitment for the loan guaranty. If the project account contains an amount equal to the
average annual payment of principal and interest on the bonds or for the guaranteed portion of
a guaranteed loan, the board must annually return the excess tax increment to be distributed as
provided by section 469.176, subdivision 2, clause (4), until the increment has been discharged
under the agreement or section 469.149.
History: 1984 c 502 art 10 s 6; 1Sp1985 c 13 s 161,162; 1987 c 291 s 194