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Tax Abatement in Minnesota <br /> net tax capacity of the political subdivision for the taxes payable year to <br /> which the abatement applies,or(2)$200,000. <br /> The State will not reimburse school districts for lost taxes resulting from <br /> abatement. <br /> Taxes may be abated on the entire net tax capacity of a parcel including <br /> land or areas subject to the areawide fiscal disparities tax. <br /> Property in a tax increment financing district is not eligible for abatement. <br /> Fiscal Disparities <br /> In the Seven-County Metro Area and Taconite Tax Relief Area, where <br /> the fiscal disparities program is applicable, the abatement may be <br /> calculated from the net tax capacity either before or after the portion of <br /> tax capacity subject to fiscal disparities sharing has been deducted. The <br /> tax abatement law as originally enacted prohibited any abatement of the <br /> fiscal disparities portion of the tax. <br /> Bonding and Levy Limits <br /> General Obligation bonds supported by tax abatements may be issued <br /> without a referendum,and such debt does not count against the debt limit <br /> of the subdivision. <br /> Tax Abatement bond proceeds can be used to pay for public <br /> improvements that benefit the property, acquire and convey land or other <br /> property, reimburse property owner for cost of improvements to the <br /> property, or pay costs of issuance of the bonds. <br /> The maximum principal of bonds may not exceed the estimated sum of <br /> the abatements for the property for the years authorized. <br /> Tax abatements are not subject to levy limitations and are excluded from <br /> the calculation of the net debt limit. <br /> GI SPRINGSTED Page 4 <br />