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Obsolete tax provisions cleaned up

Published (4/27/2012)
By Lee Ann Schutz
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This session’s omnibus tax bill awaits final action in conference committee, but a tax bill passed 109-20 by the House April 24 would clean up some technical and obsolete issues enacted in previous sessions’ tax bills.

Sponsored by Rep. Greg Davids (R-Preston), HF2690 would clean up language to the 2011 market value exclusion provision, which impacts calculation of city debt limits and tax capacity. These changes could cost the General Fund $400 million in fiscal year 2014 and the same amount in the next fiscal year.

Other provisions in the bill include:

• repeal of the International Economic Development Zone program provisions that were enacted in 2005 to permit development of an airfreight zone in Rosemount. The zone was not designated and the promoters have abandoned the idea;

• elimination of provisions related to pre-1979 tax increment finance districts. These districts were grandfathered by the 1979 TIF Act and were required to be decertified by 2009. As of the end of 2011 all of these districts have been decertified;

• expands the permitted facilities and expenditures that may be financed with county capital improvement program bonds to include public works facilities, fairgrounds buildings, records and data storage facilities; and

• shortening from 14 to 10 days the minimum number of days notice must be published before the public meeting on issuance of CIP bonds.

The bill now awaits action on the Senate floor. Sen. Julianne Ortman (R-Chanhassen) is the Senate sponsor.

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