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Tax Abatement in Minnesota The Mechanics)) Qualifications Any political subdivision, including statutory cities,home rule charter cities,towns, counties, and school districts, is authorized to abate property taxes on selected parcels or defer the payments of the taxes and abate the interest and penalty that otherwise would apply, if: • The benefits gained equal or exceed the cost to the political subdivision or the abatement phases in a property tax increase, and • The abatement is in the public interest because it will: — increases or preserves the tax base; — provides employment opportunities; — provides or helps acquire or construct public facilities; — helps redevelop or renew blighted areas; — helps provide access to services; — finances or provides for public infrastructure; — phase in a property tax increase on the parcel resulting from an increase of 50%or more in one year on the estimated market value of the parcel,other than an increase due to improvement of the parcel;or — stabilize the tax base through equalization of property tax revenues for a specified time period with respect to a taxpayer whose real and personal property is subject to valuation under Minnesota Rules, chapter 8 t00. Duration and Restrictions Cities,counties, and school districts as combined jurisdictions may grant an abatement for no longer than 15 years(8 year maximum if no initial duration is specified),or for no longer than 20 years if two or fewer jurisdictions participate. However, individual jurisdictions may grant an abatement for a period of up to 20 years, if the abatement is for a qualified business meaning a taxpayer whose real and personal property is subject to valuation under Minnesota Rules,chapter 8100. No back-to-back abatements. Eight years must pass before a new abatement can be applied. In any given year,the total amount of property takes abated by a political subdivision for all parcels may not exceed the rg eater of(l) 10%of the i1 SPRINGSTED Page 3