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A MN Dept or Trade & Econ Dev 1 61Z Z97-1168 05/05/94 Z0:Z9: 54 Page Z or z SENT BY:DTED ; 5- 5-94 ; 14;30 ; 6122961290-0 1 612 297 4406;# 1 ECONOMIC DEVELOPMENT UPDATE DIED u.:' EDAM Minnesota Department of Trade Economic Development and Economic Development Association of Minnesota Ccnatect:Come Goddard 612-297-1168 May 5, 1994 Contact:John Moon 612-854-6215 1-800-654-3838 Vol. 1,No, 13 Week in Review; * Enterprise Zone: Establishes Enterprise Action on the bills will take place over Zone program in accordance to the federal the next week. If you have a particular Omnibus Tax Bill(HJ. 390;L program. issue or item in the spending bills you wish to comment on, please call the * Replacement Equipment Tax * Rural Job Tax Credit: Establishes a rural Governor's office at 1-800-657-3717. Reduction:Phases down the sales tax on job tax credit for qualified employees hired replacement equipment to 2% for over a two year period for a maximum Workers' Compensation Ref= purchases made after June 30, 1998. amount of$5,000 per employee. We couldn't close this issue without a not on Workers' compensation. A For Purchases After State Local Note: A maximum of$900,000 is available bipartisan coalition in the House has Rate Option for both the Enterprise Zone and the Rural confronted Speaker Anderson stating June 30, 1995 5.0% 0.5% Job Tax Credit program. 1/3 is allocated to they want to vote on workers' June 30, 1996 4.0% 0.5% Minneapolis; 1/3 is allocated to S. Paul; and compensation reform. Rumors are it • June 30, 1997 3.8% 0% 1/3 is allocated to the rest of the cities in the may or may not come up today(May 5, June 30, 1998 2.9% 0% state, with a minimum of $60,000 to be 1994). It's not too late to call your June 30, 1999 2.0% 0% allocated to S.St. Paul. *** The Governor is legislator and tell them how important expected to sign the bill today. this issue is to economic development in * Replacement Equipment Definition Minnesota. There are currently 76 votes Clarification: Replacement capital ,Senate Appravas Minimum WaajLiati to pass a bill,but procedures being used equipment is machinery and equipment Meshy, the-Senate apptovea a measure to to block the bill need 90 votes to that perform the same basic function as increase the minimum wage in Minnesota by override the Speaker. the old machine,regardless of increased $0.40 on Jan. 1, 1993 and S0.35 on Jan. 1, speed, efficiency or production 1996. According to modeling done by House Leadership: capability. Includes, repair & DTED, the increase will have the following Speaker Iry Anderson: 612-296-4936 replacement parts, replacement economic impact: Rep. Phil Carruthers: 612-296-3709 computer software integral to the Rep. Steve Sviggum: 612-296-2273 production process, and building 1996 1998 2000 materials used in special purpose Net Loss of Jobs (1,770) (4,240) (6,' Note:Please see the ED Update of April buildings and foundations necessary for 28, 1994 for a full list of House the capital equipment. Net Loss of Real members and their phone numbers, Disposable Income (36) (69) (10c, * Special Tooling Equipment: Removes (Millions 1987 $) the current 4% sales tax as of 7.1.94. Net Loss of GSP (48) (108) (152) I.HE 1994 LEGISLATIVE SESSION * Eliminates LGA Trust Fund. (Millions 1987 $) IS EXPECTED TO END TODAY! * Board of Innovation and Cooperation The House passed the Senate version of the MAY 8, 1994, $2.2 million for FY 1995 for grants to Minimum Wage Bill today 76-58. 111 communities for sharing resources, Omnibus Spending Bills: The Legislature Senate: * Business Incubator Property Tax: has finalized major spending bills in the area General Information 612-296-0504 Property owned by a 501(c)(3)nonprofit of education, welfare and state agency Senate Index-296-2887 organization that is used for a business funding. The Governor is expected to use House of Representatives: incubator would have a reduced rate on his veto authority to cut spending in the bills General Information-612-296-2146 the first $100,000 of market value to 3 that are projected to leave fiscal "tails" into House Index-296-6646 percent. For market value above the next biennium of over $300 billion $100,000 the rate is 4.6 percent. This is dollars. 1a make a dump of address,phone oriel allowed if the organization owns more TED umber,please contacte.wsGene Godaa� ! then one property.