S.F. No. 27 - 2020 Tax Relief for Destroyed Property

• Provides property tax abatement for 2020 and exemption for 2021-2022 for homestead and nonhomestead property in Hennepin or Ramsey County that was 50% or more destroyed by arson or vandalism between May 25-June 8, 2020.

• Establishes income tax subtraction for individual and C corporation owners/tenants of certified destroyed property based on net rents and business income derived from the qualified property for tax years 2020-2021.

• Creates refundable job credit for qualified businesses operating on destroyed property, calculated as the difference between payroll baseline (Jan 1, 2019-Dec 31, 2019) and reduced payroll (Jan 1-May 25, 2020) for tax years 2020-2021.

• Exempts building materials, equipment, and supplies used to construct or replace certified destroyed property from sales tax, with refund processed retroactively for purchases made May 25, 2020-January 1, 2022.

• Appropriates funds from general fund to pay tax refunds authorized by the job credit provisions.