Senate Bill No. 2314 Summary

• Municipalities may grant property tax exemptions for up to 5 years on buildings and improvements for primary sector businesses certified by the Department of Commerce, or up to 10 years for agricultural commodity manufacturing projects.

• Cities and counties with populations under 40,000 may grant retail sector tax exemptions only after obtaining voter approval at a general election and establishing criteria for exemption decisions.

• Minimum criteria for retail exemptions must include evaluation of effects on existing retail businesses, impacts on other taxpayers, written performance agreements with project operators, and assessment of whether the project would locate in the municipality without an exemption.

• School districts and township supervisors affected by proposed exemptions must be included as nonvoting ex officio members of municipal governing bodies during negotiations and deliberations.

• The legislative management shall study methods during the 2013-14 interim to measure effectiveness and accountability of property tax exemptions and economic development incentives, with findings due to the 64th legislative assembly; effective date is taxable years beginning after December 31, 2014.