Purpose of the Bill

The purpose of this bill is to stimulate economic growth and development by increasing financial support for border city enterprise zones in Minnesota. It seeks to enhance the attractiveness of these areas for businesses and to incentivize companies to remain within or relocate to these zones.

Main Provisions

• Increased Funding for Tax Reductions: The bill proposes to double the annual allocation for tax reductions in border city enterprise zones from $750,000 to $1,500,000. This aims to provide more substantial financial incentives to businesses operating in these areas.

• Per Capita Distribution: The increased allocation will be distributed among the cities situated on the western border of Minnesota on a per capita basis. This ensures that the funding is proportional to the population size of each city within the enterprise zone.

• Flexible Use of Funds: The allocations can be used for various forms of tax reductions under specified statutes or other tax offsets. These are contingent upon a determination by the municipality that such financial incentives are necessary to retain or attract businesses within the zone.

• Non-Expiry of Allocations: Any funds allocated for these purposes do not expire and will remain available for use by the cities until they are entirely utilized. This allows for long-term planning and steady financial support for enterprise zones.

Significant Changes to Existing Law

The bill amends existing Minnesota statutes by increasing the allocation for border city enterprise zones and providing greater flexibility and longevity in the use of allocated funds.

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Relevant Terms - Tax reduction - Border city enterprise zones - Economic development - Business incentives - Municipality - Enterprise zone funding