1.1                          A bill for an act 
  1.2             relating to taxation; providing a sales tax exemption 
  1.3             for building materials used in certain agricultural 
  1.4             processing facilities; exempting a tax increment 
  1.5             financing district in the city of Brooten from the 
  1.6             LGA/HACA offset; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 297A. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [297A.2574] [AGRICULTURE PROCESSING FACILITY 
  1.10  MATERIALS; EXEMPTION.] 
  1.11     Subdivision 1.  [EXEMPTION; DEFINITION.] Purchases of 
  1.12  construction materials and supplies are exempt from the sales 
  1.13  and use taxes imposed under this chapter, regardless of whether 
  1.14  purchased by the owner or a contractor, subcontractor, or 
  1.15  builder, if the materials and supplies are used or consumed in 
  1.16  constructing an agriculture processing facility that meets the 
  1.17  requirements of this section.  For purposes of this section, 
  1.18  "agricultural processing facility" means land, buildings, 
  1.19  structures, fixtures, and improvements used or operated 
  1.20  primarily for the processing or production of marketable 
  1.21  products from agricultural crops, including waste and residues 
  1.22  from agricultural crops, but not including livestock or 
  1.23  livestock products, poultry or poultry products, or wood or wood 
  1.24  products.  
  1.25     Subd. 2.  [QUALIFICATIONS.] An agricultural processing 
  1.26  facility qualifies for the exemption provided under this section 
  2.1   if it meets each of the following requirements: 
  2.2      (a) The total investment in the facility must be at least 
  2.3   $8,500,000. 
  2.4      (b) The facility must be located in a municipality that has 
  2.5   a median household income that does not exceed $18,000 according 
  2.6   to the 1990 federal census information on income and poverty 
  2.7   status in 1989. 
  2.8      (c) The total investment in the facility must exceed an 
  2.9   amount equal to $12,000 per resident of the municipality in 
  2.10  which the facility is located. 
  2.11     Subd. 3.  [COLLECTION AND REFUND OF TAX.] The tax shall be 
  2.12  imposed and collected as if the rates under sections 297A.02, 
  2.13  subdivision 1, and 297A.021, applied, and then refunded in the 
  2.14  manner provided in section 297A.15, subdivision 5. 
  2.15     Sec. 2.  [CITY OF BROOTEN; TAX INCREMENT FINANCING 
  2.16  DISTRICT.] 
  2.17     A tax increment financing district created by the city of 
  2.18  Brooten for the purpose of financing the construction of an 
  2.19  agricultural processing facility as defined in Minnesota 
  2.20  Statutes, section 297A.2574, is exempt from the provisions of 
  2.21  Minnesota Statutes, section 273.1399. 
  2.22     Sec. 3.  [EFFECTIVE DATE.] 
  2.23     Section 1 is effective for sales made after March 31, 1995. 
  2.24  Section 2 is effective the day following final enactment, after 
  2.25  compliance by the governing body of the city of Brooten with 
  2.26  Minnesota Statutes, section 645.021, subdivision 3.