SB 343 - This act allows the governing body of any municipality to enter into loan agreements, or sell, lease, or mortgage municipal property to private entities for the development of a technology business facility project. Municipalities include utility boards of counties, cities, towns or villages. Transactions involving the lease or rental of such properties will be exempt from state and local sales taxes and any leasehold interests on such properties will not be subject to property taxes. The act allows municipalities to sell or otherwise dispose of municipal property to private entities for technology business facility projects provided that the terms and methods utilized reasonably protect the economic well being of the municipality. Any private entity which transfers property to the municipality for purposes of a technology business facility project will reserve the right to request that the municipality transfer such property back to the entity at no cost. This act provides state and local sales and use tax exemptions for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services, used in new data storage center facilities. The act also provides a state and local sales and use tax exemption for purchases of tangible personal property for the construction of a new data storage center facility. In order to receive the sales tax exemption provided for new data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least $25 million of new facility investment and create at least 10 new jobs with wages of at least 150 percent of the county average wage over a three year period. However, a project may be approved despite not meeting these requirements if the incentives will not exceed the projected net fiscal benefit to the state over a ten year period.
The act also creates a state and local sales and use tax exemption for existing data storage center facilities for all machinery, equipment, computers, electrical energy, gas, water and other utilities, including telecommunication and internet services. The exemption will only apply to the increase in expenditures for utilities over the previous year's expenditures. In order to receive the sales tax exemption provided for existing data storage center facilities, an application must be made to the Department of Economic Development for certification. Such application must show that the project will result in at least $5 million of new facility investment over a one year period and create at least 5 new jobs with wages of at least 150 percent of the county average wage over a two year period. However, a project may be approved despite not meeting these requirements if the incentives will not exceed the projected net fiscal benefit to the state over a ten year period.
The Department of Economic Development and the Department of Revenue are authorized to conduct random audits to ensure compliance with the requirements for state and local sales and use tax exemptions authorized under the act.
The act is similar to SB 149 (2015), SB 353 (2015), HB 497 (2015), SB 633 (2014), HB 1444 (2014), HB 1502 (2014), SB 46 (2013), SB 394 (2013), HB 222 (2013). This act is similar to provisions contained in SB 57 (2015), HB 1498 (2014), HCS/HB 1501 (2014), HCS#2/SCS/SB 777 (2014), SS/SCS/SB 120 (2013), HCS/HB 698 (2013), HCS/SB 23 (2013), HCS/SS/SCS/SB 83 (2013), HCS/SB 112 (2013), SCS/SB 584 (2012), SB 8 (1st Ex. Session), SB 217 (2011), and SB 868 (2010).
MIKE HAMMANN