Sen. Ron Latz has introduced legislation that would provide commercial and industrial businesses a property tax break to help improve aging commercial buildings.
“I’ve introduced ‘This Old Shop’ legislation in the past,” Sen. Latz said. “I’m hoping this year we can provide a break to businesses that need incentives to renovate their existing facilities.”
The bill would give businesses a break on local property tax assessments that would likely increase because of the renovations and improvements.
“In this economy, businesses do not have the capital available for new construction,” Sen. Latz said. “Renovation is a great option; providing the tax break is a real incentive for businesses to make the investment in their facilities and infrastructure. Plus urging businesses to renovate and rehabilitate existing structures keeps them in our communities, growing jobs and boosting our economy.”
The program would be designed much like “This Old House” legislation. Buildings over 45 years old and that have an estimated market value of $2 million or less would be eligible to receive tax assessment abatement on the improvement for ten years. After ten years of abatement, the property tax assessment value increases would be phased in over a five year period.
Sen. Latz noted that, in the past, the legislation was supported by the League of Minnesota Cities.
“This could be a real boost for our businesses with older facilities and bring infrastructure improvements in cities across the state,” Sen. Latz noted.