NEWS RELEASE
District 12A 651-296-4929 – rep.jay.mcnamar@senate.mn
431 Capitol, St. Paul, MN 55155
FOR IMMEDIATE RELEASE
CONTACT:
Matt Privratsky (651) 296-6860
April 16, 2013
St. Paul, Minnesota — Today, Reps. Ben Lien (DFL – Moorhead), Paul Marquart (DFL – Dilworth), and Jay McNamar (DFL – Elbow Lake) announced that important tax provisions to help border cities are included in the House Omnibus Tax Bill.
The provision allocates $1.5 million to the border city enterprise zone and border city development zone tax reductions. The funds will be divided on a per capita basis between Moorhead, Dilworth, Breckenridge, East Grand Forks, and Ortonville. These investments will allow local cities to have a menu of options to choose from when encouraging local business development in their communities. The bill also includes a change to the Disparity Reduction Credit program, which only applies to cities along the North Dakota border, and reduces the effective property tax rates on small businesses from the current level of 2.3% to 2.0%.
Cities will be able to offer:
"Our border communities are in a very unique situation," said Rep. McNamar. "Obviously we are working hard to provide options for all of the communities in Minnesota but when you're neighboring another state, you deal with a whole different set of circumstances. These investments will help our border towns stay competitive."
These investments in economic development were originally proposed earlier this session by lead author Rep. Lien and co-authors Rep. Marquart and Rep. McNamar — each of whom represent communities that will benefit from these investments in economic development.
"As the chief author of these bills, I am very pleased to see them included in the omnibus bill,” said Rep. Lien. “The Border City and Disparity Reduction programs were top priorities for me this session and they will help small businesses in western Minnesota compete with North and South Dakota businesses.”
This economic development for the border cities is in addition to policies that have been implemented state wide. The omnibus tax bill will help small business owners by eliminating corporate loopholes that allow corporations to shelter profits overseas and by leveling the playing field between Minnesota bricks and mortar retailers and online retailers with the affiliate nexus. It simplifies taxpaying with an upfront exemption for capital equipment and improves the Angel Investor Tax Credit and the Historic Credit for community businesses.
The Omnibus Tax Bill is being heard in the House Taxes Committee this week.
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