Bill Text: MN HF483 | 2011-2012 | 87th Legislature | Introduced
Bill Title: JOBZ waiver authority modified.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-02-14 - Introduction and first reading, referred to Jobs and Economic Development Finance [HF483 Detail]
Download: Minnesota-2011-HF483-Introduced.html
1.2relating to taxation; job opportunity building zones; modifying waiver authority;
1.3amending Minnesota Statutes 2010, section 469.319, subdivision 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 469.319, subdivision 5, is amended to read:
1.6 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
1.7repayment required under subdivision 1, if the commissioner, in consultation with
1.8the commissioner of employment and economic development and appropriate officials
1.9from the local government units in which the qualified business is located, determines
1.10that requiring repayment of the tax is not in the best interest of the state or the local
1.11government units and the business either:
1.12(1) ceased operating as a result of circumstances beyond its control including, but
1.13not limited to:
1.14(1) (i) a natural disaster;
1.15(2) (ii) unforeseen industry trends; or
1.16(3) (iii) loss of a major supplier or customer.; or
1.17(2) did not meet the goals described in the business subsidy agreement as a result
1.18of unforeseen economic or business conditions, including but not limited to those listed
1.19in clause (1), items (ii) and (iii), as long as the business:
1.20(i) continues to maintain the same level of operations in the zone that it operated
1.21while receiving tax benefits listed in section 469.315; and
1.22(ii) meets the employment requirements under section 469.310, subdivision 11,
1.23paragraph (d), clause (1), within one year from the date of ineligibility and maintains the
1.24employment requirements for three additional consecutive years.
2.1 (b)(1) The commissioner shall waive repayment required under subdivision 1a if
2.2the commissioner has waived repayment by the operating business under subdivision 1,
2.3unless the person that received benefits without having to operate a business in the zone
2.4was a contributing factor in the qualified business becoming subject to repayment under
2.5subdivision 1;
2.6 (2) the commissioner shall waive the repayment required under subdivision 1a, even
2.7if the repayment has not been waived for the operating business if:
2.8 (i) the person that received benefits without having to operate a business in the zone
2.9and the business that operated in the zone are not related parties as defined in section
2.10267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
2.11 (ii) actions of the person were not a contributing factor in the qualified business
2.12becoming subject to repayment under subdivision 1.
2.13(c) Requests for waiver must be made no later than 60 days after the notice date
2.14of an order issued under subdivision 4, paragraph (d), or, in the case of property taxes,
2.15within 60 days of the date of a tax statement issued under subdivision 4, paragraph (c).
2.16Requests for waiver under paragraph (a), clause (2), must be made within 60 days of the
2.17effective date of this act.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3amending Minnesota Statutes 2010, section 469.319, subdivision 5.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 469.319, subdivision 5, is amended to read:
1.6 Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
1.7repayment required under subdivision 1, if the commissioner, in consultation with
1.8the commissioner of employment and economic development and appropriate officials
1.9from the local government units in which the qualified business is located, determines
1.10that requiring repayment of the tax is not in the best interest of the state or the local
1.11government units and the business either:
1.12(1) ceased operating as a result of circumstances beyond its control including, but
1.13not limited to:
1.14
1.15
1.16
1.17(2) did not meet the goals described in the business subsidy agreement as a result
1.18of unforeseen economic or business conditions, including but not limited to those listed
1.19in clause (1), items (ii) and (iii), as long as the business:
1.20(i) continues to maintain the same level of operations in the zone that it operated
1.21while receiving tax benefits listed in section 469.315; and
1.22(ii) meets the employment requirements under section 469.310, subdivision 11,
1.23paragraph (d), clause (1), within one year from the date of ineligibility and maintains the
1.24employment requirements for three additional consecutive years.
2.1 (b)(1) The commissioner shall waive repayment required under subdivision 1a if
2.2the commissioner has waived repayment by the operating business under subdivision 1,
2.3unless the person that received benefits without having to operate a business in the zone
2.4was a contributing factor in the qualified business becoming subject to repayment under
2.5subdivision 1;
2.6 (2) the commissioner shall waive the repayment required under subdivision 1a, even
2.7if the repayment has not been waived for the operating business if:
2.8 (i) the person that received benefits without having to operate a business in the zone
2.9and the business that operated in the zone are not related parties as defined in section
2.10267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
2.11 (ii) actions of the person were not a contributing factor in the qualified business
2.12becoming subject to repayment under subdivision 1.
2.13(c) Requests for waiver must be made no later than 60 days after the notice date
2.14of an order issued under subdivision 4, paragraph (d), or, in the case of property taxes,
2.15within 60 days of the date of a tax statement issued under subdivision 4, paragraph (c).
2.16Requests for waiver under paragraph (a), clause (2), must be made within 60 days of the
2.17effective date of this act.
2.18EFFECTIVE DATE.This section is effective the day following final enactment.
