MN SF3908

City governing bodies may designate up to 30 percent of qualifying commercial-industrial properties as business retention zones and reduce their estimated market value by a specified percentage.

Qualifying properties must be classified as 1c, have existed in the city for a specified number of years, and have experienced a property tax increase of a specified percentage or greater between two consecutive calendar years beginning in 2018 or later.

Applications must be submitted to the city clerk by April 30 of the assessment year, and the city must hold a public hearing with at least 30 days' notice before approving or disapproving the designation by resolution.

Value reductions cannot include improvements existing at the time the reduction is granted or during the reduction period, and the city clerk must forward approved resolutions to the county assessor for implementation.

Valuation reductions may be granted for a maximum of 15 years, commencing in the first year of designation, though cities may specify a shorter duration by resolution.