1997 Minnesota Statutes

     469.1813 Abatement authority. 

    Subdivision 1.    Authority.  The governing body of a 
 political subdivision may grant an abatement of the taxes 
 imposed by the political subdivision on a parcel of property, if:

    (a) it expects the benefits to the political subdivision of 
 the proposed abatement agreement to at least equal the costs to 
 the political subdivision of the proposed agreement; and 

    (b) it finds that doing so is in the public interest 
 because it will: 

    (1) increase or preserve tax base; 

    (2) provide employment opportunities in the political 
 subdivision; 

    (3) provide or help acquire or construct public facilities; 

    (4) help redevelop or renew blighted areas; or 

    (5) help provide access to services for residents of the 
 political subdivision. 

    Subd. 2.    Abatement resolution.  The governing body of 
 a political subdivision may grant an abatement only by adopting 
 an abatement resolution, specifying the terms of the abatement.  
 The resolution must also include a specific statement as to the 
 nature and extent of the public benefits which the governing 
 body expects to result from the agreement.  The abatement may 
 reduce all or part of the property tax levied by the political 
 subdivision on the parcel.  The political subdivision may limit 
 the abatement: 

    (1) to a specific dollar amount per year or in total; 

    (2) to the increase in property taxes resulting from 
 improvement of the property; 

    (3) to the increases in property taxes resulting from 
 increases in the market value or tax capacity of the property; 
 or 

    (4) in any other manner the governing body of the 
 subdivision determines is appropriate. 

 The political subdivision may not abate tax attributable to the 
 value of the land or the areawide tax under chapter 276A or 473F.

    Subd. 3.    School district abatement procedure.  
 Notwithstanding the amounts in subdivision 2, a school district 
 that grants an abatement under this section must limit the 
 abatement for any property to not more than an amount equal to 
 the product of:  (1) the property's net tax capacity, and (2) 
 the difference between the district's total tax rate for that 
 year and one-half of the general education tax rate for that 
 year.  An abatement granted under this section is not an 
 abatement for purposes of state aid or local levy under chapter 
 124.  

    Subd. 4.    Property located in tax increment financing 
 districts.  The governing body of a governmental subdivision 
 may not enter into a property tax abatement agreement under 
 sections 469.1812 to 469.1815 if the property is located in a 
 tax increment financing district. 

    Subd. 5.    Notice and public hearing.  (a) The 
 governing body of the political subdivision may approve an 
 abatement under sections 469.1812 to 469.1815 only after holding 
 a public hearing on the abatement. 

    (b) Notice of the hearing must be published in a newspaper 
 of general circulation in the political subdivision at least 
 once more than ten days but less than 30 days before the 
 hearing.  The newspaper must be one of general interest and 
 readership in the community, and not one of limited subject 
 matter.  The newspaper must be published at least once per 
 week.  The notice must indicate that the governing body will 
 consider granting a property tax abatement, identify the 
 property or properties for which an abatement is under 
 consideration, and the total estimated amount of the abatement. 

    Subd. 6.    Duration limit.  (a) A political subdivision 
 other than a school district may grant an abatement for a period 
 no longer than ten years.  The subdivision may specify in the 
 abatement resolution a shorter duration.  If the resolution does 
 not specify a period of time, the abatement is for eight years.  
 If an abatement has been granted to a parcel of property and the 
 period of the abatement has expired, the political subdivision 
 that granted the abatement may not grant another abatement for 
 eight years after the expiration of the first abatement.  This 
 prohibition does not apply to improvements added after and not 
 subject to the first abatement. 

    (b) A school district may grant an abatement for only one 
 year at a time.  Once a school district has authorized an 
 abatement for a property, it may reauthorize the abatement in 
 any subsequent year for the next seven years, or nine years if 
 provided in the original abatement agreement.  This prohibition 
 does not apply to improvements added after and not subject to 
 the original abatement agreement. 

    Subd. 7.    Review and modification of abatements.  The 
 political subdivision may provide in the abatement resolution 
 that the abatement may not be modified or changed during its 
 term.  If the abatement resolution does not provide that the 
 abatement may not be modified or changed, the governing body of 
 the political subdivision may review and modify the abatement 
 every second year after it was approved. 

    Subd. 8.    Limitation on abatements.  In any year, the 
 total amount of property taxes abated by a political subdivision 
 under this section may not exceed (1) five percent of the 
 current levy, or (2) $100,000, whichever is greater. 

    HIST: 1997 c 231 art 2 s 46