1999 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, or 
 defer the payments of the taxes and abate the interest and 
 penalty that otherwise would apply, 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; 

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

    (6) finance or provide public infrastructure. 

    Subd. 1a.    Use of term.  As used in this section and 
 sections 469.1814 and 469.1815, "abatement" includes a deferral 
 of taxes with abatement of interest and penalties unless the 
 context indicates otherwise. 

    Subd. 2.    Abatement resolution.  (a) The governing 
 body of a political subdivision may grant an abatement only by 
 adopting an abatement resolution, specifying the terms of the 
 abatement.  In the case of a town, the board of supervisors may 
 approve the abatement resolution.  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 resolution may provide that the political 
 subdivision will retain or transfer to another political 
 subdivision the abatement to pay for all or part of the cost of 
 acquisition or improvement of public infrastructure, whether or 
 not located on or adjacent to the parcel for which the tax is 
 abated.  The abatement may reduce all or part of the property 
 tax amount for the political subdivision on the parcel.  A 
 political subdivision's maximum annual amount for a parcel 
 equals its total local tax rate multiplied by the total net tax 
 capacity of the parcel. 

    (b) 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; 

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

    (5) to the interest and penalty that would otherwise be due 
 on taxes that are deferred. 

    (c) The political subdivision may not abate tax 
 attributable to the areawide tax under chapter 276A or 473F, 
 except as provided in this subdivision. 

    Subd. 3.    School district abatements.  An abatement 
 granted under this section is not an abatement for purposes of 
 state aid or local levy under sections 127A.40 to 127A.51. 

    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 political subdivision 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. 

    Subd. 6a.    Deferment payment schedule.  When the tax 
 is deferred and the interest and penalty abated, the political 
 subdivision must set a schedule for repayments.  The deferred 
 payment must be included with the current taxes due and payable 
 in the years the deferred payments are due and payable and must 
 be levied accordingly. 

    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. 

    Subd. 9.    Consent of property owner not required.  A 
 political subdivision may abate the taxes on a parcel under 
 sections 469.1812 to 469.1815 without obtaining the consent of 
 the property owner. 

    HIST: 1997 c 231 art 2 s 46; 1998 c 397 art 11 s 3; 1999 c 243 
 art 10 s 8-14; 1999 c 248 s 19