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SF2754 (Legislative Session 94 (2025-2026))

Border city enterprise zones allocation increase provision and tax reduction authority modification provision

Related bill: HF2931

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to foster economic development by increasing tax reduction allocations for border city enterprise zones in Minnesota. It aims to facilitate business retention and attraction in these areas by providing more financial incentives.

Main Provisions

  • Increased Tax Reduction Allocation: The bill mandates the Commissioner of Revenue to increase annual tax reduction allocations to $1,500,000 for cities on Minnesota's western border that qualify as enterprise zones. This is a rise from the previous allocation of $750,000.

  • Allocation and Utilization: The additional funds are distributed among eligible cities based on their population size. These funds can be employed for tax reductions or offsets for businesses in the enterprise zone, as permitted by sections 469.171, 469.1732, and 469.1734.

  • Ongoing Availability: Any funds allocated that are not used immediately will remain available to the city until they are fully utilized, providing increased flexibility for local economic strategies.

Significant Changes to Existing Law

  • The significant change introduced by this bill is doubling the annual allocation for tax reductions in the border city enterprise zones, aiming to strengthen economic development in these areas.

Relevant Terms

border city enterprise zones, tax reductions, economic development, allocation, Commissioner of Revenue, business retention, business attraction, western border cities.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes
March 26, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increases the annual allocation amount for tax reductions to $1,500,000."
      ],
      "removed": [
        ""
      ],
      "summary": "This amendment alters the allocation of tax reductions for border city enterprise zones under section 469.169, subdivision 21.",
      "modified": [
        "Clarifies that allocations are for tax reductions and other offsets as provided by law."
      ]
    },
    "citation": "469.169",
    "subdivision": "subdivision 21"
  }
]

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