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\2K F 85 E.SEVENTH PLACE,SUITE 100 SAINT PAUL,MN 55101-2887 651-223-3000 FAX:651-223-3002 • SPRINGSTED Public Finance Advisors TAX ABATEMENT IN MINNESOTA Requirements and Provisions General Requirements In 1997 the State Legislature enacted Minnesota Statutes, section 469.1812 to 469.1815 (the "Tax Abatement Law") as amended in 1999, which authorizes certain political subdivisions (statutory cities, home rule charter cities, towns, counties and school districts) to abate property taxes on selected parcels of property, if: (a) it expects the benefits from the proposed abatement to be at least equal to the costs to the political subdivision, and (b) it finds that the tax abatement is in the public interest, because it will: • (1) increase or preserve tax base; (2) provide jobs; (3) provide or help acquire or construct public facilities; (4) redevelopment or renew blighted areas; (5) provide access to services for residents; or (6) finance or provide for public infrastructure. The 1999 amendments provided, among other things, that taxes can be deferred without penalty or interest under the abatement provisions. Duration and Other Restrictions Tax abatement on a parcer of property may be granted for up to 10 years for each taxing entity (8 year maximum if no initial duration is specified). Taxes may be abated on the entire NTC of a parcel including land or any area wide fiscal disparities tax. Property in a TIF district is not subject to abatement. Limitations on Amount In any given year, the total amount of property taxes abated by a political subdivision for all parcels may not exceed the greater of (1) five percent of the subdivision's current levy, or (2) $100,000. The State will not reimburse the school for lost taxes resulting from tax abatement. • SAINT PAUL,MN • MINNEAPOLIS,MN • MILWAUKEE,WI • OVERLAND PARK,KS • WASHINGTON,DC • DES MOINES,IA