1.1                          A bill for an act 
  1.2             relating to taxation; extending the property tax 
  1.3             exemption for business incubator property; amending 
  1.4             Minnesota Statutes 2002, section 272.02, subdivision 
  1.5             31. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 272.02, 
  1.8   subdivision 31, is amended to read: 
  1.9      Subd. 31.  [BUSINESS INCUBATOR PROPERTY.] Property owned by 
  1.10  a nonprofit charitable organization that qualifies for tax 
  1.11  exemption under section 501(c)(3) of the Internal Revenue Code 
  1.12  of 1986, as amended through December 31, 1997, that is intended 
  1.13  to be used as a business incubator in a high-unemployment 
  1.14  county, is exempt.  As used in this subdivision, a "business 
  1.15  incubator" is a facility used for the development of nonretail 
  1.16  businesses, offering access to equipment, space, services, and 
  1.17  advice to the tenant businesses, for the purpose of encouraging 
  1.18  economic development, diversification, and job creation in the 
  1.19  area served by the organization, and "high-unemployment county" 
  1.20  is a county that had an average annual unemployment rate of 7.9 
  1.21  percent or greater in 1997.  Property that qualifies for the 
  1.22  exemption under this subdivision is limited to no more than two 
  1.23  contiguous parcels and structures that do not exceed in the 
  1.24  aggregate 40,000 square feet.  This exemption expires after 
  1.25  taxes payable in 2005 2011.