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TAXES, continued <br /> <br /> ...The rent capitalization method for valuing land is delayed for one year to <br />allow furthe~ study, because it was discovered it would create inequities between <br />different categories of property and could actually raise taxes for some farm areas. <br /> <br /> ...The definition of market value was changed to allow the use of the price <br />which could be obtained at an auction sale. <br /> <br /> '..Provides a special levy for counties to complete the Minnesota C~operative <br />Soil Survey and thus collect production value information. <br /> <br /> INCOME TAX PREPARATION WILL BE SIMPLER because of Conformity with the federal <br />income tax system on a number of deductions, including medical, gas tax, casualty <br />and theft losses, and political deductions. .. <br /> <br /> INDEXING remains in place and only ban be' suSpended'during a biennium~'.when a'deficit <br />is projected following the enactment of a budget with a $250 million surplus. <br /> <br /> LODGING TAX...allows any city to place up to a 3% tax on hotels and motels. <br />Ninety-five percent of the proceeds from the tax must be used for tourism promotion. <br /> <br /> ECONOMIC DEVELOPMENT INCENTIVES <br /> <br /> ...A company which TRANSFERS TECHNOLOGY to a-qualified small business will be <br />eligible for an income tax credit equal to 30% of the net value of the technology. <br /> <br /> ...A 30% income tax credit will be granted for EQUITY INVESTMENTS in a qualified <br />small business located in an Enterprise Zone. <br /> <br /> ...Economically distressed communities may apply for designation as an ENTERPRISE <br />ZONE. Within such an area, special state tax incentives may be selected by the <br />community to offer to new and expanding businesses. (Border cities do not have to <br />apply for the designation and may offer some incentives to established businesses as <br />well as new ones.) <br /> <br /> The application must include a development plan and the community's selection <br />of tax incentives it plans, to offer businesses. Two to five zones will be designated <br />during each of the next two years (not counting border cities). <br /> <br /> Tax incentives which the stare'will offer include a sales tax exemption for <br /> construction materials and equipment; income tax credit for non-construction payroll <br /> costs or wages (maximum of $3,000 per employee); income tax credit for construction <br /> financing; and a state property tax credit for part of the property taxes on a new or <br />-expanded facility. These are in addition to a locally funded property tax reduction. <br /> <br />- 19 - <br /> <br /> <br />