Section 1, subdivision 1, authorizes the city of Taylors Falls to designate all or part of the city as a border city development zone.
Subdivision 2 applies the general law for border city development zones. This law allows businesses locating or expanding in designated zones to apply to the city for property tax exemptions, corporate franchise tax credits, and sales tax exemptions. Some of these benefits may be extended to businesses outside the development zone.
Subdivision 3 limits the cumulative state tax reductions under this section for all years to $100,000. The allocation may be used to offset taxes in the zone only if the city determines that the tax reduction is necessary to enable a business to expand within the city or to attract a business to the city. The Commissioner of Revenue may waive the limit under standards specified in statute applying to enterprise zones.
Section 2 gives effect to section 1 upon local approval by the governing body of the city of Taylors Falls.