5.2. SR 02-06-2006 - Laserfiche WebLink

Home Browse Search

o Abatements are authorized to [mance public infrastructure, whether ornot the benefitted infrastructure is on or adjacent to the parcel for which the tax is abated. The owner of a parcel for which taxes are abated need not consent. Thus, a political subdivision may approve an abatement for certain parcels and use the retained taxes to finance public improvement projects. o The notification requirements include a public hearing with a 10 to 30 day publication notice. o The [mdings required by a councilor board include general statements of tax base, preservation, employment, public facilities, blight, or access to services. o G.O. Abatement Bonds can be issued without affecting net debt and can be issued_without a referendum under certain conditions. Authorities may increase their abatement levies to make up for shortfalls resulting from class rate compression. Effective for bonds issued or sold after July 1, 2001, abatement bonds used for buildings primarily used to conduct the business of a unit of government must require approval by the voters in a referendum, under legislation passed in 2001. o Abatement does not require a property owners cOIlsent. o Abatements cannot be used in concert with tax increment financing, but can be utilized after a TIF district is decertified. o Effective for abatement levies payable beginning in 2002, the 2001 Legislature authorizes political subdivisions to increase their abatement levies to make up for shortfalls from class rate compression. Another issue which complicates the abatement program is the specific authority of a governmental body to pledge its abatements to the debt of another governmental entity, if the debt is not a G.O. Abatement Bond. Many attorneys differ on the interpretations of the pledges allowed and what exactly constitutes a G.O. Abatement Bond. We recommend that abatement always be utilized in conjunction with a development agreement that clearly spells out the developer's responsibilities with respect to improvements and job and wage goals. Abatement is a "business subsidy" and as such is subject to Minnesota Statutes, Sections ll6J.993 through 116J.995. Ehlers & Associates, Inc. - Abatement