2007 Minnesota Statutes

469.170 TAX CLASSIFICATION OF EMPLOYMENT PROPERTY.
    Subdivision 1. Municipal applications. The governing body of any municipality that
contains an enterprise zone designated under section 469.167 shall by resolution establish a
program for classification of new property or improvements to existing property as employment
property pursuant to the provisions of this section. Applications for classification under
the program shall be filed with the municipal clerk or auditor in a form prescribed by the
commissioner of revenue, with additions as prescribed by the governing body. The application
shall contain, where appropriate, a legal description of the parcel of land on which the facility
is to be situated or improved; a general description of the facility or improvement and its
proposed use; the probable time schedule for undertaking any construction or improvement; and
information regarding the findings required in subdivision 4; the market value and the net tax
capacity of the land and of all other taxable property then situated on it, according to the most
recent assessment; and, if the property is to be improved or expanded, an estimate of the probable
cost of the new construction or improvement and the market value of the new or improved facility
(excluding land) when completed.
    Subd. 2. Hearing. Upon receipt of an application the municipal clerk or auditor, subject to
any prior approval required by the resolution establishing the program, shall furnish a copy to the
assessor for the property and to the governing body of each school district and other public body
authorized to levy taxes on the property. The municipal clerk or auditor shall publish a notice in
the official newspaper of the time and place of a hearing to be held by the governing body on
the application, not less than 30 days after the notice is published. The notice shall state that
the applicant, the assessor, representatives of the affected taxing authorities, and any taxpayer
of the municipality may be heard or may present their views in writing at or before the hearing.
The hearing may be adjourned from time to time, but the governing body shall take action on
the application by resolution within 30 days after the hearing ends. If disapproved, the reasons
shall be set forth in the resolution. The applicant may appeal to the commissioner of revenue
within 30 days thereafter, but only on the ground that the determination is arbitrary, in relation to
prior determinations as to classification under the program, or based upon a mistake of law. If
approved, the resolution shall include determinations as to the findings required in subdivision 4,
and the clerk or auditor shall transmit it to the commissioner.
    Subd. 3. Commissioner's action. Within 60 days after receipt of an approved application or
an appeal from the disapproval of an application, the commissioner of revenue shall take action on
it. The commissioner of revenue shall approve each application approved by the governing body
on finding that it complies with the provisions of this section. On disapproving the application,
or finding that grounds exist for appeal of a disapproved application, the commissioner shall
transmit the finding to the governing body and the applicant. When grounds for appeal have been
determined to exist, the governing body shall reconsider and take further action on the application
within 30 days after receipt of the commissioner's notice and serve written notice of the action
upon the applicant. The applicant, within 30 days after receipt of notice of final disapproval by
the commissioner of revenue or the governing body, may appeal from the disapproval to a court
of competent jurisdiction.
    Subd. 4. Hardship area zone criteria. In the case of hardship area zones, an application
shall not be approved unless the governing body finds that the construction or improvement
of the facility:
(1) is reasonably likely to create new employment or prevent a loss of employment in the
municipality;
(2) is not likely to have the effect of transferring existing employment from one or more
other municipalities within the state;
(3) is not likely to cause the total market value of employment property within the
municipality to exceed five percent of the total market value of all taxable property within the
municipality; or, if it will, considering the amount of additional municipal services likely to be
required for the employment property, is not likely to substantially impede the operation or the
financial integrity of the municipality or any other public body levying taxes on property in
the municipality; and
(4) will not result in the reduction of the net tax capacity of existing property within the
municipality owned by the applicant, through abandonment, demolition, or otherwise, without
provision for the restoration of the existing property within a reasonable time in a manner
sufficient to restore the net tax capacity.
    Subd. 5. Border city zone criteria. In the case of border city zones, an application for
assessment as employment property under section 273.13, subdivision 24, paragraph (b), or
for a tax reduction pursuant to section 469.171, subdivision 1, may not be approved unless the
governing body finds that the construction or improvement of the facility is not likely to have the
effect of transferring existing employment from one or more other municipalities within the state.
    Subd. 5a. Plans: businesses with no previous credits. All participating enterprise zone
municipalities must submit, with each application from businesses that previously have not
received enterprise zone credits, a written multiyear enterprise zone tax credit distribution plan.
The plan must set forth: (1) the maximum amount of credits to be drawn over the five year
allowable period; and (2) the maximum amount of state tax credits to be drawn each of those five
years, and whether the form will be in tax credits or refunds.
    Subd. 5b. Plans: previously approved businesses. Within 90 days of final enactment of
this act, all participating enterprise zone municipalities, except those containing an enterprise
zone designated under section 469.168, subdivision 4, paragraph (c), other than a zone in the city
of the first class, must submit a written multiyear enterprise zone tax credit distribution plan.
The plan must specify the maximum amounts of state tax credits previously approved business
applicants are eligible to receive in each of the remaining years for which credits have been
authorized. The commissioner may only approve requests for state tax credits from a business
that meets the requirements established in sections 469.166 to 469.173. The commissioner shall
not approve any request for state tax credits from a business that exceeds the amount set forth in
an enterprise zone municipality's multiyear enterprise zone tax credit distribution plan for that
business entity for that year.
    Subd. 5c. Border city credit plans. Border city enterprise zones designated under section
469.168, subdivision 4, paragraph (c), that are not located in cities of the first class shall, within
90 days of final enactment of this act, submit a written multiyear enterprise zone tax distribution
plan. The plan must specify the maximum aggregate amount of tax credits all previously approved
business applicants are eligible to receive in each of the remaining years for which credits have
been authorized. The commissioner may only approve requests for state tax credits for a business
that meets the requirements established in sections 469.166 to 469.173.
    Subd. 5d. Amendment of plans. A written multiyear enterprise zone tax credit distribution
plan submitted under subdivision 5a, 5b, or 5c, may be amended, provided that an initial
amendment may be made no sooner than two years from the date of submission of the original
plan, and subsequent amendments may be made no sooner than two years after the most recent
prior amendment.
    Subd. 5e. Limits on multiyear plans. The requirements for a multiyear enterprise zone tax
credit distribution plan under subdivisions 5a to 5d apply only for:
(1) each business that will receive more than $25,000 in credits in a year; or
(2) tax reductions under section 469.171, subdivision 1, for businesses in areas designated
under section 469.171, subdivision 5.
    Subd. 6. Classification. Property shall be classified as employment property and assessed
as provided for class 3b property in section 273.13, subdivision 24, paragraph (b), for taxes
levied in the year in which the classification is approved and for the four succeeding years after
the approval. If the classification is revoked, the revocation is effective for taxes levied in the
next year after revocation.
    Subd. 7. Revocation. The governing body may request the commissioner of revenue to
approve the revocation of a classification pursuant to this section if it finds by resolution that:
(1) the construction or improvement of the facility has not been completed within two
years after the approval of the classification, or any longer period that may have been allowed in
the approving resolution or may be necessary due to circumstances not reasonably within the
control of the applicant; or
(2) the applicant has not proceeded in good faith with the construction or improvement of the
facility, or with its operation, in a manner which is consistent with the purpose of this section and
is possible under circumstances reasonably within the control of the applicant.
The findings may be made only after a hearing held upon notice mailed to the applicant by
certified mail at least 60 days before the hearing.
    Subd. 8. Hearing. Upon receipt of the request for revocation, the commissioner of revenue
shall notify the applicant and the governing body of a time and place at which the applicant may
be heard. The hearing must be held within 30 days after receipt of the request. Within 30 days after
the hearing, the commissioner of revenue shall determine whether the facts and circumstances are
grounds for revocation as recommended by the governing body. If the commissioner of revenue
revokes the classification, the applicant may appeal from the order to a court of competent
jurisdiction at any time within 30 days after revocation.
    Subd. 9.[Repealed, 1995 c 186 s 81]
History: 1987 c 268 art 6 s 24; art 10 s 2; 1987 c 291 s 171,243; 1988 c 719 art 5 s 84; art
19 s 23; 1989 c 329 art 13 s 20; 1998 c 389 art 12 s 4