Taylors Falls takes on Wisconsin

The mayor of Taylors Falls is in a border battle with Wisconsin. Only a 220-foot bridge span separates his community of approximately 1,000 from St. Croix Falls, Wis., and its new sign that states: “Open for business.”

Despite the larger community across the river, with its tax advantages and the perceived business-friendly climate, Mike Buchite has a plan to grow jobs in his community with a new business park. He needs one thing from the state, however: to have all or a part of his city designated as a border city development zone and $100,000 to help him provide a state tax benefit to businesses choosing to locate there.

Rep. Bob Barrett (R-Shafer) sponsors HF112 that would accomplish the mission.

Approved by the House Property and Local Tax Division March 2, it was sent to the House Jobs and Economic Development Finance Committee. The companion, SF109, sponsored by Sen. Sean Nienow (R-Cambridge), has been laid over by the Senate Taxes Committee for possible omnibus bill inclusion.

A border city designation allows businesses locating or expanding in designated zones to qualify for property tax exemptions, corporate franchise tax credits and a sales tax exemption.

Through partnerships, Buchite now has land and the funds for infrastructure. “I just need you to do one thing, level the playing field for me with Wisconsin. Allow me to compete,” he said. With the $100,000, he would give land to any new business starting up in the new park.

Rep. John Benson (DFL-Minnetonka) said the problem with incentives is that it can create a system of winners and losers with businesses jumping from one incentive to another, and that the broader issue of taxes is what needs to be addressed.

Instead of asking the state for funding, Rep. Ann Lenczewski (DFL-Bloomington) suggested the city change its business classification rate, creating a shift that would fall on the shoulders of the entire community’s taxpayers.