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t <br /> Tax Abatement in Minnesota <br /> Introduction <br /> In 1997, legislation authorizing the use of tax abatement in Minnesota was <br /> passed by the State legislature. Amendments to the statute were approved <br /> nearly every year since authorization. The statutory language defining tax <br /> abatement is quite brief and is contained in MN Statutes 469.1812 to <br /> 469.1815. <br /> Section 469 refers to the capture or deferral of property taxes due as"tax <br /> abatement." Under Minnesota law,taxes due on real property subject to <br /> tax abatement must still be paid as due. If tax abatement is in place,the <br /> appropriate portion of the taxes can be captured for development purposes. <br /> Just what the appropriate portion is depends on which governmental <br /> entities hold public hearings and adopt abatement resolutions. A <br /> participating city,county,or school district is required to act separately to <br /> determine the use of its share of property taxes. <br /> Unlike tax increment,tax abatement can be used to capture taxes on land <br /> and existing buildings as well as new improvements. The captured taxes <br /> must be used to offset the costs agreed to under an abatement agreement. <br /> G�SPRINGSTED Page 1 <br />