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469. Economic Development Page I 01 4 469.1813 ABATEMENT AUTHORITY. Subdivision 1. Authority. The governing body of a political subdivision may grant a current or prospective abatement, by contract or otherwise, of the taxes imposed by the political subdivision on a parcel of property, which may include personal property and machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise would apply, if: (1) it expects the benefits to the political subdivision of the proposed abatement agreement to at least equal the costs to the political subdivision of the proposed agreement or intends the abatement to phase in a property tax increase, as provided in clause (2)(vii); and (2) it finds that doing so is in the public interest because it will: (i) increase or preserve tax base; (ii) provide employment opportunities in the political subdivision; (iii) provide or help acquire or construct public facilities; (iv) help redevelop or renew blighted areas; (v) help provide access to services for residents of the political subdivision; (vi) finance or provide public infrastructure; (vii) phase in a property tax increase on the parcel resulting from an increase of 50 percent or more in one year on the estimated market value of the parcel, other than increase attributable to improvement of the parcel; or (viii) stabilize the tax base through equalization of property tax revenues for a specified period of time with respect to a taxpayer whose real and personal property is subject to valuation under Minnesota Rules, chapter 8100. Subd. 1 a. Use ofterm. As used in this section and sections 469.1814 and 469.18] 5, "abatement" includes a deferral oftaxes with abatement of interest and penalties unless the context indicates otherwise. Subd. 2. Abatement resolution. (a) The governing body of a political subdivision may grant an abatement only by adopting an abatement resolution, specifying the terms of the abatement In the case of a town, the board of supervisors may approve the abatement resolution. The resolution must also include a specific statement as to the nature and extent of the public benefits which the governing body expects to result from the agreement The resolution may provide that the political subdivision will retain or transfer to another political subdivision the abatement to pay for all or part of the cost of acquisition or improvement of public infrastructure, whether or not located on or adjacent to the parcel for which the tax is abated. The abatement may reduce all or part ofthe property tax amount for the political subdivision on the parcel. A political subdivision's maximum annual amount for a parcel equals its total local tax rate multiplied by the total net tax capacity of the parcel. (b) The political subdivision may limit the abatement: (I) to a specific dollar amount per year or in total; (2) to the increase in property taxes resulting from improvement of the property; (3) to the increases in property taxes resulting from increases in the market value or tax capacity of the property; (4) in any other manner the governing body ofthe subdivision determines is appropriate; or (5) to the interest and penalty that would otherwise be due on taxes that are deferred. (c) The political subdivision may not abate tax attributable to the areawide tax under chapter 276A or 473F, except as provided in this subdivision. Subd. 3. School district abatements. An abatement granted under this section is not an https:/ /www.revisor.1eg.state.mn.uslbinl getpub. php?pubtype=ST A T _ CHAP&year=current... 2/1312008