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;.-.~ ,. CAMPBELL KNUTSON Professional Association Attorneys at Law Thomas J, Campbell R,'ger N, Knmson TI'wmas IV!. Scott E!lhm B, Knetsch SlIesan Lea Pace (651) 452~5000 Fax (651) 452-5550 JoelJ.Jamnik Andrea McDuwell Poehler Matthew K, Bwkl* John F, Kelly Matthew J. Foli 1\.1argllerite M. McCarron . Al.)j j i.....L.I\.5L'd in \1.:.'fsc-I,JlI'i1n Property Tax Abatement Abatements authorized. A city, school district, county, or a town, may grant an abatement of the taxes imposed ID: the political subdivision on a parcel ofpropertv. if: (a) 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; and (b) it finds that doing so is in the public interest because it will: (I) increase or preserve tax base; (2) provide employment opportunities in the political subdivision; (3) provide or help acquire or construct public facilities; (4) help redevelop or renew blighted areas; or (5) help provide access to services for residents of the political subdivision. Council Resolution. Abatement may be granted by adopting an abatement resolution, specifying the terms of the abatement. 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. Amount of Abatement. The abatement may reduce all or part of the property tax levied by the political subdivision on the parcel. The political subdivision may limit the abatement: (1) 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; or (4) in any other manner the governing body of the subdivision determines is appropriate. Metropolitan and Iron Ran!!e Area Fiscal Disparities Limitations. The political subdivision may not abate tax attributable to the value of the land or the areawide tax under the fiscal disparities laws (chapter 276A or 473F). Special School District Abatement Procedure. School districts that grant an abatement must limit the abatement for any property to not more than an amount equal to the product of: (I) the property's net tax capacity, and (2) the difference between the district's total tax rate for that year and one-half of the general education tax rate for that year. Abatements granted under this law are not considered abatements for purposes of state aid or local levy under sections 127AAO toI27A.51. Property Located in Tax Increment Financine: Districts Ineli!!ible. A local government may not enter into a property tax abatement agreement if the property is located in a tax increment fmancing district. Notice and Public Hearing Reauired. An abatement may be granted only after holding a public hearing on the abatement. Publication requirements. Notice of the hearing must be published in a newspaper of general circulation in the political subdivision at least once more than ten days but less than 30 days before the hearing. The newspaper must be one of general interest and readership in the community, and not one of limited subject matter. The newspaper must be published at least once per week. Notice language requirements. The notice must indicate that the governing body will consider granting a property tax abatement, identify the property or properties for which an abatement is under consideration, and the total estint~t.!;d amp'unt ofth~ abat!W1ent.... :::mite j 1 { . t..agandale UttLce Center · 1380 Corporate Center Curve · Eagan, MN 55121