Search
 

Lawsuit Challenges Tax-Free Zones

ST. PAUL-The state's JOBZ and biotech growth programs are targeted by a lawsuit that argues the tax breaks are unfair and unconstitutional. The operator of a Bloomington, MN mobile-home park are among the plaintiffs.

By Jim McCartney | Updated on March 20, 2005

ST. PAUL-Two state of Minnesota programs aimed at encouraging business development through a variety of tax breaks, including those on property taxes, have been challenged in court and may be headed for a constitutional challenge. A lawsuit claiming the Minnesota JOBZ program and a similar effort aimed at attracting biosciences companies give unfair competitive advantage to selected companies was filed Friday in Ramsey County District Court on behalf of two Minnesota taxpayers.

Under the so-called JOBZ program, approved by the legislature in 2003, businesses that move into designated tax-free zones, or expand in them, pay almost no taxes. That includes paying no sales taxes, no taxes on property improvement or on equipment purchases, or income taxes.

Through January, the state lists the total number of JOBZ deals at 125, representing about 2,900 retained jobs, 1,932 new ones and $165.8 million in capital investment. Many of those deals have been approved with little local controversy.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.